Brazil saw Gross Domestic Product (GDP) recover when Lula was in office as president of Brazil from 2003 when it held 14th place worldwide. During his two terms of government Lula took over England into 6th spot for a short period before settling in 7th position in the world. Lula’s charismatic approach to running the country also had an impact on the strength witnessed!
GDP is an indicator of the country’s economic activity and is relative to three perspectives: supply, demand, and income. Good governing creates favorable conditions for a country. International relationships are key to a country’s success. The worst period for GDP in Brazil was when the confiscation of savings occurred by the Collor government in 1990. Incidentally, Collor who was impeached in 1992, is behind the reelection of Bolsonaro, and Jair has embraced his support.
Though the global economy has recovered from the damage caused by the coronavirus pandemic, global growth has not yet gained traction. And worse, the shocks detonated by the war between Russia and Ukraine and the interest rate hike adopted by the major central banks should make the scenario difficult going forward. Brazil’s neutral attitude towards Russia makes sense to Bolsonaro, as Brazil is the biggest importer of fertilizers and Russia the biggest exporter. Its food produce output exceeds every country.
Itaú's recent survey of the 28 largest economies show that the global Gross Domestic Product (GDP) ended the second quarter of this year 3.9% above that observed in the fourth quarter of 2019, the last before the pandemic. The growth trend for some of these countries is 2.5% lower. In practice, it means that they have grown, but at a weak pace since the beginning of the health crisis.
Take care!
Prof. Carl Boniface