Brazil’s G.D.P. increased by 1% in the first quarter of 2017 in comparison with the three last months of last year.
Naturally, the result was celebrated by the government and, technically, the country is out of recession. However, economists warn that the performance in the past three months isn’t a guarantee the country overcame its ongoing recession for various factors.
The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period. And, for the circumstances the country is going through, Brazil’s GDP registered a quite impressive growth. In fact it was the first positive figure since the last quarter of 2014.
Information disclosed by the government is a relief with the wave of bad news for Brazil. The most important factor behind this growth lays on the agriculture. The country had the biggest harvest of the past 20 years and it’s one of the most efficient agriculture’s in the world. At the same time, the data shows it’s unlikely for agriculture to keep this growth rate and all other economy sectors are still stagnated.
Furthermore, the new data doesn’t reflect the turbulence of the latest plead bargaining. The consequence of the plea bargain deal of the meat exporter JBS to be more specific. The company’s CEO actually taped a conversation with Mr. Temer’s where the JBS representative is encouraged to keep paying for some key congressman to keep their mouth shut on corruption issues. This occurred in the second trimester of 2017, after the positive numbers were consolidated.