http://www.bbc.com/news/business-32082662
Even though Brazil is the world's 7th largest economy, they it just barely broke out of contracting in the last fiscal year. The last four years have shown a gradual slowing of the Brazilian economy although it has been growing rapidly for the last ten years overall. The slow is probably the result of low commodity prices and low investment and invest confidence. The government has been offering labor tax breaks, subsidizing gasoline, and lowering the price of electricity in order to stimulate the slowing economy. The current finance minister, Joaquim Levy, has been raising taxes and and implementing some austerity measures in order to balance the budget. Analysts say that 2015 might be an even tougher year for Brazil.
3 comments:
I think the slow growth had to do with their hosting the World Cup last year too. It's hard for them to get investment since the government is so corrupt. When the cost of corruption is too high, the economy would have a hard time to grow.
Very true. And so much of their little investment was directed solely toward the Games. As the past proves, these investments in a very specific type of infrastructure have been of little to no value once the events are over.
That's a good point, Hannah. Since majority of their investment went towards the World Cup, these investments aren't contributing to their economy today. Once this event was over, tourism declined and investments slowed causing a halt in their economic growth. Understandably, why would you want to invest or travel to Brazil post-World Cup?
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