Brazil macroeconomic analysis

GDP annual growth:

To analyze the country's growth, we use GDP, with a value of around 0.2/0.3%. From January 2015 to January 2017, we can see an inverted pyramid trend with negative values reaching a negative maximum in the fourth quarter of 2015 and reducing the values of this decrease from that moment quarter to quarter.

The data do not suggest a prediction of exponential growth, but rather a slow growth, a positive trend around 0-1% in the coming quarters, as has been happening in recent years.

To obtain a more global vision within the geographical environment, we will make some comparisons with neighboring countries such as Colombia, Peru or Argentina.

Colombia with a GDP of 0.8%, Peru with 0.7% and Argentina with 0.7%, show positive and very similar data of the GDP throughout the South American environment.

GDP per capita : 10826 USD / DGP per capita PPP: 14024

These data can distort the result of the comparison, since it does not take into account variables such as the price difference between the different countries, so the real conclusion will be extracted from the next section, GDP per capita PPP. In this case, GDP per capita PPP, shows us a value of 14024 USD, when we correct it with Parity of Purchasing Power. What points us that this economy is in 79% of the world average. Now the comparison between its different neighbors makes more sense. Colombia with 13124 USD, Peru with 12071 USD and Argentina with 18479 USD.

After eliminating price distortions and the power of the currency between the different countries, we arrive at a different conclusion to the one that occurred in the previous section,

Unemployment Rate: 12.4%

The unemployment rate in Brazil stands at around 12.4%, in the graph, we can see a form of pyramid from the first quarter of 2017 to the last quarter of 2017. Reaching a maximum of 13.7% in March 2017, and from that moment, coinciding with the periods of GDP with positive values, helped by this tendency of slight and constant economic growth.

The unemployment rates of some of its neighboring countries are, Colombia with 9.2%, Peru with 6.2% and Argentina with 8.7%.

Inflation Rate: 2.7%

The inflation rate in Brazil stands at 2.7% in October 2017.

The monetary policies carried out have achieved historical minimums in 2017, one of the lowest inflation rates in the last 10 years.

The scenarios predict some types of inflation below the official target for 2020 of 4%. A monetary measure that would continue to stimulate economic growth in Brazil above its South American competitors, such as Colombia with 4.05% or Argentina with levels close to 22%.

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