Brazil Sees First Growth in Two Years

After years of financial distress and struggle, the Brazilian economy grew by 1%, according to government agencies. During the first three months of 2017, the Brazilian GDP grew by 1% as compared to the two previous years. This translates into an increase of nearly $500 billion in production of goods and services.

The gross domestic product represents the total value of all goods and services produced over a specific time period, indicating the size and evolution of a country’s economy, Reuters reported.

These numbers might not seem like much, but there is a lot to celebrate when putting the context into perspective. Between 2015 and 2016, the Brazilian economy shrank by about 4% each year. The period has since been called the worst recession in the history of the country.

Now, with output increasing, 2017’s growth technically removes Brazil from the recession.

Indicators show that the main explanation for the expansion was agriculture. Brazil experienced the greatest improvement of field and farming production in 20 years. The harvest of grains was vital in creating the economic growth, as it was the biggest expansion since the 4th quarter of 1996. While this is cause for celebration, specialists say that other sectors of Brazilian employment need to improve in order for the nation to fully recover from the recession.

Meanwhile, Brazilian President Michel Temer announced last Wednesday a record loan plan amounting to more than 190 billion reais (some $59.5 billion) for the country’s agriculture sector, which is responsible for Brazil’s current economic recovery, so that the 2017-2018 harvest can be paid for.

“With this plan, we reaffirm our commitment to the agriculture and livestock sector, which sustained the GDP in the first quarter,” said Temer.