With a retreat in the Gross Domestic Product (GDP) of 0.1% in the third quarter of this year, Brazil appeared in 26th place in the global ranking of economic performance, which comprises 31 nations. According to experts, the country has entered a technical recession, when the country’s economy has declined for two straight quarters.
The GDP, which refers to the sum of all the wealth produced in the country, is periodically released by the Brazilian Institute of Geography and Statistics (IBGE).
The Austin Rating survey, based on data from the World Bank and the IMF, shows that the Brazilian GDP, in the third quarter, was lower than that of South American countries such as Colombia and Chile. At the top of the list appears Saudi Arabia, where the economy grew by 5.8% between July and September. On the other hand, Japan recorded a GDP lower than Brazil’s.
And the economic scenario should still take some time to improve, according to Austin Rating’s projection. The expectation is that the Brazilian GDP will grow by just 0.6% in 2022. The FGV professor, Eduardo Zilber, says that the result ‘was expected’, and warned that Brazil needs to ‘correct the course’ of the economy.
“Without a doubt it’s a worrying aspect, but it’s not surprising. We know that the performance of the Brazilian economy has been poor for some time and these numbers were expected.
What we need to do is to correct the course of our economy in order to try to return to a path of economic growth, which we have moved away from for a long time”, said the economist at FGV.
Currently, the Brazilian economy appears in 13th in the ranking of the largest in the world, with US$ 1.595 billion in current values. The United States is the 1st, with US$ 22.939 trillion, or 23.4% of the world share. In second place comes China, responsible for 17.8% of the world economy.
Reference: CNN Brasil
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