Blog
Unit 4 Macro: Brazil - economic slowdown continues
Geoff Riley
26th December 2012
Brazil's growth rate is slowing down, their currency is depreciating (good for exports) but investment remains low and the country is not achieving the minimum growth needed for another step change in extreme poverty levels. There is good background here in this news article from the BBC for students who like to keep up to date with what is happening in the BRIC economies.
This article from the Telegraph adds context to the Brazilian slowdown story. The economy is suffering from structural competitiveness problems - accentuated in recent times by their very strong exchange rate. This article from Forbes also looks at the causes of the growth slowdown in Brazil. High labour costs, weak productivity growth and protectionist tendencies are cited as some of the factors behind a possible slow-growth trap. Will Brazil suffer from the middle-income trap in years ahead or can the government engineer another step change in their growth prospects?
Guardian: Lessons from the Brics, part I: can Brazil and China keep growing?
Videos:
Brazil held back by education trap (BBC, Sept 2012)
Jim O'Neil on prospects for BRIC countries and others
Brazilian per capita GDP (PPP)
Source: tradingeconomics.com
The Brazilian economy stumbles and stutters - Economist (September 2013)
After a decade of encouraging growth, Brazil's economy has stalled
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.