Brazil grows again

Brazil breathes new air with the work of the economic team, combined with legal changes and favored by the winds of the world economy, have been to act in a way to favor more promising results, which we can detect through some macroeconomic indicators and sectoral.

The work of the economic team, coupled with legal changes and favored by the winds of the world economy, has been to act in a way that favors more promising results, which we can detect through some macroeconomic and sectoral indicators.

Brazilian GDP, after falling back two consecutive years, points to a growth of around 1% in 2017 and 3% in 2108. The recovery of GDP was initially due to the international price of commodities and activity However, for the next few quarters, Industry and Services are expected to favor a resumption of growth;

The unemployment rate has been showing a downward trend in the last 6 months; The income of the worker ceased its downward trend, showing signs of a resumption of its purchasing power, both due to the recovery of employment and the reduction of inflation;

Petrobrás, the main Brazilian company that was involved in the political crisis, with some of its managers affected by the Lava Jato operation, after seeing its equity value, given the stock market in January 2016, return to 2003 values, reverses the trend and more of which triples this value;

The capital market has been recovering, which is demonstrated by the IBOVESPA's consistent growth of 18.9% from January to August 2017; Sector data already point to the resumption of economic growth: the sale of air tickets grew 2% in June 2017, in relation to the same month of 2016; growth of more than 7% in the sale of new vehicles is expected in 2018, compared to 2017; road freight transport is expected to grow by 2% in 2017 and more than 3% by 2018;

Civil Construction and the sale of new real estate, commercial and residential real estate, which saw demand decrease and inventories grow, shows signs of reversal. In 2017 the market predicts stabilization and resumption of growth from 2018. We must emphasize, above all, that the states of the Federation that suffered most from the crisis that is already distant from the country were those in which the market and labor were more dependent on these states. São Paulo, unlike other states, had a more independent market, reacted in advance, as well as those states whose primary activity is Agriculture and Commodities.

The Lava Jato operation, far from being a crisis vector, has been praised and supported by society, as it points to profound changes in the relationship between the State and the Market. Brazil that emerges from the economic crisis is a country that will bring with it new ethical demands in the relations between politics and society.

Finally, we must highlight the challenges of a country that has sought to control the limits of government spending, updated and improved labor legislation and now discusses changes in Social Security and addressing their inequalities through a more equitable tax legislation, is a country who showed signs of strength and determination in coping with his crises and difficulties. A country that seeks to regain its leading role in the international arena.