Brazil faces The worst Crisis in its History

GDP fell by 3.6% for the second year in a row. With this decline of 7.2% over two years, the recession is even stronger than in the 1930s.

Brazil is going through the worst recession in its history, with GDP declining for the second year in a row, while the effects of government austerity measures are lagging behind and the country remains undermined by corruption scandals. The gross domestic product of the largest economy in Latin America fell 3.6% in 2016, after 3.8% in 2015, according to official figures announced Tuesday. "This is the worst economic crisis in history" the country, admitted the Minister of Economy, Henrique Meirelles, at a meeting of the Council for Economic and Social Development (CDES). With this decline of 7.2% over two years, the recession is even stronger than during the 1930s (- 5.3% between 1929 and 1933).

The figures released Tuesday show that the quarterly GDP fell for the eighth time in a row: a decline of 0.9% in the fourth quarter compared to the third and 2.5% year on year. Brazil experienced a period of strong growth under the leadership of left-wing President Luiz Inacio Lula da Silva (2003-2010), thanks to high commodity prices and strong Chinese demand, while Europe and the United States United were in a recession. It was also cited as an example among emerging countries, thanks to social programs that took millions of people out of precariousness. Growth peaked in 2010, but this boom came to an end with sharply lower prices for oil, soybeans and other commodities.

The country went into recession in the second quarter of 2015, at the start of the second term of left-wing President Dilma Rousseff, who succeeded Lula before being fired last year for makeup of the public accounts. Today, Brazil's unemployment rate is also at record levels, with 12.6% in January and 12.9 million people looking for work. In 2016, all sectors of activity were affected by the crisis, with a decline ...


After the reelection of Dilma Rousseff, all parliamentary activity was blocked by the opposition. For A. Neves, to fight against corruption, it was necessary to "pull the PT from power". The main defendants in the Petrobras scandal are now in power, and A. Neves is completely discredited. Capital income is exempt from taxes. The government spends without counting for its customers: drastic increase in the salaries of the judges, better paid than in the USA ...



By putting a large part of the managers of construction companies in jail, guilty or not, the Brazilian justice paralyzed the activity in this area, and consequently a good part of the economy. These companies were starting to gain a foothold in the US market. We can not exclude a deliberate will of judges very close to the USA







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