Brazil is undergoing its slowest post-recession economic recovery in the country’s history. At the current pace, the Brazilian economy will only return to 2014 levels in Q3 2023—almost one decade after the start of the two-year recession. One piece of data exemplifies the slow pace of growth: Brazil’s total spending on wages, including social security benefits, is expected to rise by only 1.1 percent this year, to BRL 1.18 trillion.
Not long ago, Brazil was the world’s darling, considered one of the countries possessing the most potential for growth, a sentiment best captured by The Economist‘s famous cover, depicting Christ the Redeemer as a rocket launching into space. Becoming a world power, it seemed, would only be a matter of time. Now, however, we are where we are.