2014–2016 Brazilian economic recession
| Statistical Table | |
|---|---|
| Inflation (IPCA) | |
| 2002 | 12.53% |
| 2003 | 9.30% |
| 2004 | 7.60% |
| 2005 | 5.69% |
| 2006 | 3.14% |
| 2007 | 4.46% |
| 2008 | 5.91% |
| 2009 | 4.31% |
| 2010 | 5.90% |
| 2011 | 6.50% |
| 2012 | 5.84% |
| 2013 | 5.91% |
| 2014 | 6.41% |
| 2015 | 10.67% |
| 2016 | 6.29% |
| Source: | |
Brazil experienced an economic crisis, starting in mid-2014, which continues into 2017. The economic crisis is coupled with a political crisis in Brazil that resulted in the impeachment of president Dilma Rousseff and in widespread dissatisfaction with the political system.
In 2015, Brazil's GDP fell by 3.9% due to a drop in salary levels, restrictions on credit and a rise in the basic interest rate. In 2016, Brazil's GDP fell by 3.6% due to all sectors dropped. It was the first time since 1931 that the GDP fell in two consecutive years.
Before the recession, Brazil's unemployment rate hovered around 6.8% for most of 2014 and has been generally increasing since February 2015, averaging 8.5% in 2015. Latin America’s largest economy lost more than 1.5 million jobs throughout 2015, fueling public discontent against the political establishment and the political leadership of the Worker's Party and President Dilma Rousseff. The unemployment rate is expected to rise throughout the rest of 2016 while GDP falls.
Brazil is currently experiencing a fiscal crisis, and an increasing budget deficit, which, according to Bloomberg, has been "the largest-ever primary budget gap "..."as a two-year economic recession sapped tax collection while expenses grew further." The government deficit has reached 5.8 billion reais (U$1.7 billion) during the first three months of 2016, the widest reported since December 2001. The two-year long recession can be explained by the decrease in government revenue from taxes, caused by the recession, while expenses from government have been growing constantly.
This is a table of the credit ratings of the Brazilian economy according to Trading Economics.
Since the impeachment of Dilma Rousseff and the subsequent rise of Michel Temer to power, a variety of projects, many of which seen as unpopular, were proposed in order to get the economy back on track. In early 2017, there already were signals that the economy was recovery, but it is agreed that the process would be long and slow.
In June 2017, a 1 per cent rise in GDP in the first trimester of the year was reported. It was the first rise of the GDP after eight consecutive falls (two years) The Minister of Finance, Henrique Meirelles, said that the country had exited the "greatest recession of the century" However, economists say that the growth characterizes only the end of the "technical recession" and that it is still early to claim that the crisis is over. Unemployment is still high and there's still widespread uncertainty regarding the future of the economy, especially after political scandals that occurred in that year.
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