The Brazilian economy grows at small levels threatened by different flanks

The Brazilian economy grew by 0.2% in the second quarter of this year compared to the first, according to data released by the government on Friday, showing that the country is moving at a very slow pace after a timid decline in 2017 have responded to the deep recession that has occurred in the previous two years.

According to the data published by the Brazilian Institute of Geography and Statistics (BIM), the largest South American economy has virtually stopped since September last year because of the various threats it suffers, such as electoral uncertainty, global trade strains, high unemployment and a large deficit the public accounts.

The agency reviewed its latest data and reported that the economy grew by only 0.1% in the first quarter of this year compared to the previous quarter, not the 0.4% reported initially; and that did not grow in the fourth quarter of last year compared to the third quarter despite an increase of 0.1%.

This means that Brazil has grown only 0.3 percentage point in the last three quarters.

"The economy has lost pace of growth, it is growing but is slower than last year", says economist Rebeca de Palis, head of the BIM for the study of economic growth.

"The economy is paralyzed, the growth rates of the past three quarters were moderate," said Goldman Sachs, chief economist of Latin America, Alberto Ramos, in a report to the risk assessment agency's clients.

Data from gross domestic product (GDP) prompted analysts to announce immediately that they will review their projections for Brazil's growth this year and that they will so far put it under the expected 1.47%.

For analysts and consultants, the Brazilian economy will maintain the timid recovery of 2017 in 2018, when it posted a growth of 1% after the contraction of 3.5% in 2015 and 3.5% in 2016, a biennium in which Brazil was confronted with its most severe recession in recent decades.

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The prognoses for the second semester are not the best because of the threats that the economy has several flanks.

Brazil is practically paralyzed, including investment, due to political uncertainty, since the presidential elections in October have been the most unpredictable in the last two decades and the polls are led by former President Luiz Inácio Lula da Silva, who has been in jail since April he will probably be disqualified because the legislation in the second instance contradicts the candidacy of convicts, as is the case.

This year's global trade strains, which have already hampered some of the Brazilian exports, the still high unemployment, with about 12.9 million unemployed, the massive government deficit with frozen investments, and the current rise of the dollar to historical levels also threaten slow growth. (EFE)

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