Brazil’s unshakeable recession sets new record
Having hosted one of the worlds most coveted events, there had been hopes Brazil would finally begin to see some return on the $4.6 billion investment. The state had argued the Olympics could stand as a catalyst for economic development, that it could attracted the kind of financial influence that the country needed to progress, that it would give the Brazilian people the facilities and infrastructure many will utilise for generations to come.
The results are in, and it seems the countless empty stadiums either mothballed or used as bus depots have done little to boost the ever-growing void. Brazil ending a second year in recession, leaving the county in its deepest economic decline since records began, and 8% smaller than it was in December 2014.
Brazil is another country deeply affected by the drop-in commodity prices. With demand in China continuing to fall, declining investor confidence has forced many companies to cut costs hitting the employment market. Unemployment stands at 12.9 million, with the current rate growing at an annual rate of 12.6%.
Corruption too has a lot to answer for in hampering the countries growth, with officials at the highest level of government falling foul of internal investigations. There have been many reports in the Brazilian media outlining how the country's biggest and best-known companies have taken advantage of unfair business rates and practices, all of which have been created to line pockets.
So how does Brazil move forward?
It could be some time before we see real change, but there are some signs of a slowing recession. With interest rates falling slower then predicted, and interest in the country’s vast commodities from America and Europe beginning to return, investor confidence is slowly returning. If government reforms in public spending are successful, Brazil could finally get a strong enough grip to turn the corner.