What to make of the latest Brazilian GDP numbers. Facebook implicates First Family in fake news production. And the latest from Operation Car Wash.
Low GDP numbers cap off dreadful decade for the Brazilian economy
The Brazilian economy grew 1.1 percent in 2019—the lowest rate since the country emerged from recession. The numbers cap off what is set to be Brazil’s worst growth decade in 120 years, unambiguous proof that the country has been utterly unable to recover from the end of the commodities super-cycle of the 2000s. Among emerging economies, Brazil only fared better in 2019 than Mexico, Turkey, and South Africa.
GDP per capita is currently 7.4 percent lower than it was in 2013. It is as if Brazilians’ revenue has stalled since 2009—which inevitably raises inequality.
Why it matters. At its current pace, Brazil’s economy would only return to pre-recession levels in 2024. The scenario is particularly bleak when we consider that the global economy will slow down this year due to the coronavirus outbreak.
By the numbers. Even the agribusiness sector—which usually drives Brazil’s GDP growth—posted underwhelming results. If the swine flu outbreak in China hadn’t heated up demand for Brazilian meat products, the situation would...