Published On: Wed, Aug 31st, 2022

Brazil – An exception in the world today

In this confusion in where the world economy is, a fact has gone unnoticed, by the mainstream media whether it is written, spoken or televised is the success of the Brazilian economy.

Inflation in the U.S. has already surpassed Brazil’s inflation in this year of 2022. From January to July, Brazil’s IPCA reached 4.77%, while America’s  was at 5.31%. Finally the EDF through its top leader, said this week that it will need to raise interest rates and that this will cause some suffering to the population

Brazil lowered the unemployment rate from more than 14% at the beginning of the current government, to around 8%, despite the entire pandemic, while in the U.S. unemployment begins its increase, even with an amount of open vacancies, which exceeds 11 million. Unemployment is expected to rise, especially in the area of the poorest population. According to ADP, only 132,000 job openings were created in August, that is, half of those in Brazil, with a jobs.

While the U.S. is bitterly growing a breakneck growth in negative balances in public accounts, last July the country had a positive balance of R$ 19.3 billion, against the same number, only negative in the previous year

Brazil is expected to have economic growth of 2% or more this year, while the U.S. already has 2 quarters of negative growth.

Brazilian foreign trade is beating its historical record, reaching 39% of its GDP, and causing Brazil to double its relevance in world trade, reaching 2% of it, still very low, but twice as many years ago. It is worth comparing with China that in 2020 foreign trade had 33% of GDP.

The balance accumulated in this government is expected to reach $1 trillion, this fact, never really seen before in the accounts of this country.

The Brazilian Agroindustry, today already feeds about 800 million citizens of the world and prepares to increase another 40% in its production, thanks to its technology, knowledge and investments, even without adequate infrastructure  for the flow and export of crops, despite the huge revolution in road and rail logistics as well as that of ports still small,  because there were decades of standstill in this modals.

Brazil’s public debt is in decline, already down to 78% of GDP despite the pandemic, while the U.S. has already surpassed $31 trillion, reaching almost 150% of the country’s GDP. The forecast that Brazilian debt would  reach 105% of GDP made in 2020 by the same incompetent “experts” ever, was wrong.

If we compare with Europe the position gets even better for Brazil

Experts predicted a vibrant Europe this year, overcoming the COVID virus crisis, and reaching growth of more than 4% in 2022. Unfortunately, these numbers are falling and we have to say that we will have a growth of 2.7%. France only grew 0.5% in the second quarter, and the French will be without power 2 hours a day.

Inflation continues to rise, already reaching 9.1% this year, numbers that have never been seen before since 1997.

Interest rates tend to be increased and the price of energy has also risen scandalously (41.9%).

Europe will go through severe shortages, high inflation, and several countries have not yet been able to return to the pre-pandemic rhythm.

Gasoline, like other energy items, has no way to lower in the short term, unlike Brazil, where there was a substantial drop falling by more than 2.7% in a week, having also fallen on other items such as aviation gasoline (more than 15%) which should help the deflation that has already been happening in the economy.

The political radicalization in this American government has reached such a point that, more than 40% of the  American population believes that there will be a civil war in the country in the next 10 years, when in Brazil, despite the revolt of the population with the restriction of freedom and expression by ministers of the Supreme Court, it is still expected a democratic solution to this agency.

With the energy crisis and especially the issue of food security, Brazil has a great responsibility in the future, and can greatly help and, more than  anything, use this privileged position, to negotiate bilateral agreements of interest to the country.

About the Author

- My name is Carlo Barbieri, an entrepreneur, civic activist and a leader of many organizations associated with Brazil. A native of Brazil myself, I am currently the CEO of Oxford Group, a firm composed of many international consulting and trading companies. I am also a founding member of the Brazilian Business Group and founding member and Past President of the Brazil Club. In addition, I serve as a Board member of the Deerfield Chamber of Commerce. I have served as a member of the Florida Chamber of Commerce and the Florida Brazil Partnership. Past President of the Rotary Club – Boca Raton West for the 2014-2015 term, I have also been Vice President and Professor of 2Grow – Human Development. An Ambassador of Barry University in Brazil, I am the former President of the Black Fire Bull Steak House. I have also presided over a number of organizations such as the Brazilian Association of Trading Companies (ABECE), Brazil-China Chamber of Commerce in São Paulo, Brazil-Australia Chamber of Commerce, Brazil-Dominican Republican Chamber of Commerce; director of the Trade Center of the State of São Paulo, Brazilian Association of Freight Forwarders and Brazilian Association of Banks. I was also a local Council member for the Consulate General of Brazil in Miami, for the 2013-2017 term.

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