Monday, August 03, 2009

Brazil ...out of the crisis induced by global meltdown

According to a cover story in Exame magazine (one of Brazil´s main business publications) Brazil is getting out of the crisis. Various key indicators confirm that economic activity and job creation have already undertaken a recovery process.

While in the United States General Motors is facing all kinds of problems, and selling part of their European assets, in Brazil a R$ 2 billion investment plan is in place to expand production. The Brazilian auto industry expects to sell 3 million units in 2009, a historic record in a year in which everyone expected the worst.

A recessionary scenario was looming in the last 6 months, with reduction of the GDP, absence of credit, lack of confidence, production interruption and slowing of sales. This reality is now only seen in the rearview mirror. Brazil is, in fact, experiencing the next phase: recovery and growth.

Employment is also entering a considerable recovery process, after predictions pictured a dark. 300,000 new jobs were created on the first 6 months of 2009, in the economy as a whole. In the end of last year 800,000 jobs were lost in the country, but in 2009 a positive balance of 600,000 is expected.

It is interesting to note that a country that has always been hit hard by the world´s economic turmoils, this time is keeping its head out of the water based mostly on internal demand. In the survey conducted by the magazine, most businessmen have expressed optimism about growth.

1 comment:

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