Brasil, with the 7th largest nominal GDP in the world, finds itself in a recession. Despite the hosting of the 2014 FIFA World Cup, Brasil’s economic stability has actually gone downhill instead of the reverse.
The Brasil’s statistics bureau reported, “economic output, GDP, fell by 0.6% in the three months to June, worse than analysts had predicted, and revised figures for the first quarter of the year also showed a fall of 0.2%.”
Brasil, recently the star country of Latin America, because of its advancements and initial progressive involvement in the global community, has taken a turn for the worst and hit a wall. Unfortunately, soon to be facing reelections, Brasil’s left-leaning President Dilma Rousseff has been of recent blame for the economic downturn.
“It is a good picture of what the economy is suffering – a slowdown in industry, a fall in investment, rising inventories. The recovery from here will be slight,” noted Eduardo Velho, chief economist at investment firm INVX Global in Sao Paulo. Velho also noted that great reforms would need to be implemented by whoever wins the election in October.
This is having a sufficient effect on interrelations and trade among Latin countries.