World Crisis Lowers Brazil’s Per-Capita GDP to US$ 9, 263

Juiz de Fora street, in BrazilFor the first time in 17 years the Brazilian economy contracted in 2009, falling by 0.2%, the Brazilian Institute of Geography and Statistics (IBGE) said Thursday. It was the first annual contraction of GDP since 1992.

The IBGE said that while the industrial and agricultural sectors were hit hardest the services sector ended up gaining in 2009.

Brazil’s GDP fell to US$ 1.77 trillion, leaving the country of 190 million with a per capita GDP of US$ 9.263, the institute said. In 2008, Brazil’s GDP stood at 1.8 trillion dollars.

“It was a good performance, because most countries had strong negative growth last year. Brazil had a reasonable result, if we take into account the scenario of capitalism’s worst crisis in the last 80 years,” Brazilian Finance Minister Guido Mantega told a press conference.

The drop reflects the effects of the global economic crisis, which was strongly felt in Brazil during the first few months of 2009. However, fourth-quarter figures show a vigorous recovery.

According to the IBGE report, GDP grew by 2% in the October to December period over the previous quarter. Growth was as high as 4.3% when compared with the same quarter of the previous year at the most acute phase of the crisis.

Brazilian industry contracted by 5.5% in 2009, although it recovered towards the end of the year, while agriculture also shrank by 5.2%. Only the service sector grew by 2.6%.

Mantega predicted growth by over 5.7% for the Brazilian economy in 2010.

The minister’s optimism was shared by the powerful Federation of Industry of the State of São Paulo (FIESP), which said Thursday that the IBGE’s data “show that the country has overcome the crisis.”

“We are in recovery, and there is no reason why that should not continue,” said Paulo Francini, director of FIESP’s economic research department.

Francini stressed, however, that the process could be jeopardized if the Brazilian Central Bank opted to raise the basic interest rate, which currently stands at 8.75%.

Mercopress

Tags:

Ads

You May Also Like

Continental Adds a Nonstop Flight Between Houston and Rio, Brazil

US-based Continental Airlines will start December 17 a new nonstop seasonal service between its ...

Jordan Holds Brazil in the Reconstruction of Iraq Fair

The Brazil in the Reconstruction of Iraq fair, which ended Wednesday, September 14,in the ...

A cane-sugar plantation in the Northeast of Brazil

Planting Sugarcane and Reaping Poverty and Eco-Degradation in Brazil

On January 22 the Lula administration announced it will increase federal funding for Brazil’s ...

Hundreds of LatAm Scholars Ask President Obama to Reject Free-Market Model

368 academics specializing in Latin America. anticipating a democratic victory in the November 4 ...

Swiss NGO Lists 52 Brazilians for the Nobel Peace Prize

The Association of 1000 Women for the Nobel Peace Prize, a Swiss non-governmental organization ...

A Lula's rally in the Brazilian Northeast

The Red Flag-Waving Throngs Are Back in Brazil for Lula’s Reelection

The crowd rushed toward the helicopter as it landed in the nearby field. As ...

Zelaya Headache: Brazil to Lose Its Embassy in Honduras by the End of January

Brazil is considering extending political asylum to Honduran ousted president Manuel Zelaya who remains ...

Brazil to Vote Against Iran Sanctions. Vote that Matters Though Will Come from Big 5

Iran’s president, Mahmoud Ahmadinejad, indirectly rebutted pressure by the international community on his country ...

Brazilian book teaches realtor how to sell real estate

Buying and Selling Real Estate in Brazil: Do’s, Don’ts and Don’t Even Thinks

Anyone could pose as a real estate agent in Brazil. In fact, selling real ...

Doing business in Brazil

Fine Points on How to Buy, Invest in or Join a Brazilian Firm

My previous articles about doing business in Brazil focused on organizing a new company ...