![]() ![]() Even though Brazil has lifted 28 million people out of poverty in the last 15 years, 10% of the population still live in poverty, while the country's richest 5% have the same income as the remaining 95% of the population.īrazil has abundant natural resources and a relatively diversified economy. Furthermore, the country continues to face social issues and has one of the highest levels of inequality in the world, with high disparities between the country's regions. The IMF expects that the unemployment rate will slightly decrease to 9.5% in 2023 and remain stable in 2024, especially as the services sector continues to recover from the aftermath of the pandemic and household consumption increases as inflation reduces. In fact, the government estimates that 39.3 million people, or 41.6% of the country's employed work force, have informal jobs. Additionally, even those who are employed, often have informal jobs. However, the government believes that the real figures are significantly higher, as an official unemployment survey shows that around 32 million people are under-utilised - meaning that they are either not working or working less than they could. The unemployment rate in Brazil decreased in 2022, reaching an expected 9.8%, as the country recovered from the impacts of the pandemic. Overall, Brazil's counter-cyclical packages in light of the pandemic have been effective in boosting economic activity, which has been gradually recovering. Although the pandemic has significantly impacted the Brazilian economy, the country has been recovering, following the implementation of the government measures to counteract the resulting economic crisis. The government budget balance registered a deficit of 6.5% in 2022, a rate which is expected to slightly increase to 7.5% in 2023, before decreasing to 6.8% in 2024. In 2022, government debt decreased to 88.2%, and is expected to remain stable over the next two years at 88.9% in 2023 and 90.6% in 2024. ![]() However, the Brazilian government claims the worst for the economy is already behind. The relatively high inflation rate and tighter credit conditions weakened household consumption in 2022. However, inflation is expected to decrease to 4.7% in 2023 and 3.9% in 2024. In 2022, inflation rate reached an estimated 9.4%, surpassing the Central Bank's target of 3.5% and its tolerance band of 5% - and salaries haven't followed. South America's largest economy is expected to grow at a slower pace in the coming years, with the IMF predicting a GDP growth of 1% in 2023 and 1.9% in 2024. In 2022, GDP grew by an estimated 2.8%, mainly driven household consumption, private investment, and exports. However, the Brazilian economy has been experiencing a slow but steady recovery in recent years. Since then, Brazil hasn’t been able to grow at the same pace it was used to during the decade before the recession hit. ![]() ![]() The country is still working on rebuilding itself after the recession that happened eight years ago, when the economy contracted by almost 7%. For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.īrazil is the world's thirteenth largest economy. ![]()
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