Friday, April 08, 2016

Brazil's boom ends

Brazil has been hit by the worst recession in more than three decades, following a drop in prices for Brazilian oil, sugar, coffee and other commodities. Brazilian economists warn that 2016 could see the economy shrink even more than in 2015, when it contracted 3.8 percent – the biggest contraction the country has seen in 25 years. About a third of unemployed Brazilians have been out of work for more than six months, according to Reuters, which is the highest rate the country has seen in 10 years. Unemployment skyrocketed in 2015, with economists predicting figures to go into double figures in the coming months. 2 million Brazilians are now expected to lose unemployment benefits by June. Economists expect the downturn to, in turn, drive the unemployment rate to more than 10 percent.

Brazil had been proclaimed one of the most successful countries on this issue of tackling poverty through various government policies but now there is serious concern that progress Brazil has made in tackling poverty could be put into reverse.

Economic Commission for Latin America and the Caribbean (ECLAC), a regional branch of the United Nations, explained that considering the poor state of the Brazilian real, rising unemployment and a crumbling democracy, continuing the same level of support for anti-poverty programs may not be as much of a priority.

Confirmation that there cannot be a permanent fix through reforms for the problems of the working class 

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