 BrazilConjunctura economiei mondiale / World Economic Studies, 2013 Abstract: Despite the incentives related to monetary and fiscal policies, the Brazilian GDP registered in 2012 its lowest growth rate after 2009 due to supply side constraints (including here poor harvests). At the same time, the second largest emerging economy worldwide is strongly affected by the unfavorable economic situation of its main trading partners: the EU (mainly due to the sovereign debt crisis in the Euro zone), the US and China, which face an economic slowdown. Moderate levels of public debt and budget deficit as a share of GDP still offer the Brazilian authorities sufficient room of maneuver for fiscal policy, in order to offset the slowing growth in other regions of the globe. The unemployment rate remains at low levels. Instead, the inflation rate, although still in the band targeted by the government (4.5% ± 2 percentage points), is in the upper half of this interval. Successive raise of the key interest rates in April and May 2013 suggests that the inflation rate is too high, affecting investment and consumption. Given the fact that Brazil hosts the 2014 FIFA World Cup and the 2016 Olympic Games, involving massive investment in infrastructure and also the current programs to stimulate economic growth and competitiveness, we conclude that the prospects for the Brazilian economy are favorable in the absence of new risk factors. Keywords: Brazil; macroeconomic indicators; GDP; inflation; unemployment; general government net lending/borrowing; gross debt; structural weaknesses (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:iem:conjun:y:2013:id:2822000009562151 Access Statistics for this article Conjunctura economiei mondiale / World Economic Studies is currently edited by Simona Moagar Poladian, PhD More articles in Conjunctura economiei mondiale / World Economic Studies from Institute for World Economy, Romanian Academy Contact information at EDIRC. |
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