Brazil : What Happened With Its Promised Skyrocket Economy? Essay

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Brazil: what happened with its promised skyrocket economy?

By the end of 2009 Brazil was in the front page of “The economist” with a special report called “Brazil takes off”. The report mentioned that “China may be leading the world economy out of recession but Brazil is also on a roll. It did not avoid the downturn, but was among the last in and the first out. Its economy is growing again at an annualized rate of 5%. It should pick up more speed over the next few years as big new deep-sea oilfields come on stream, and as Asian countries still hunger for food and minerals from Brazil 's vast and bountiful land” .

As a contrast, to the news above, the economic scenario is completely different in 2015 when the country entered in technical recession. The comparison chart (exhibit 1) shows Brazil’s and China’s GDP growth and also world average performance. Even though China has great participation in Brazil’s trade balance as the biggest importer of Brazilian’s products and therefore connected to the performance of Brazil’s economy, Brazil’s GDP growth in 2014 was merely 0.1% when China’s growth was 7.4%.

The question is what happened with the Brazilian economy? Why emerging economies are so vulnerable when developed economies change the “strategy of the game”?

The historical promise

A country with a small history of civil war and civil disorders, plenty natural resources and vast land area and that has millions of people eager to work. That’s Brazil’s intrinsic

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