Whilst the rest of the World struggles with what seems an unavoidable whirlpool of economic decent, Brazil’s story is a sharp contrast. With countries such as Spain suffering unprecedented unemployment levels around 15%, Brazil’s economic strength and stability has been proven with over 1m jobs created in 2009.
The final figures should range from 1.1m according to Labor Minister Carlos Lupi up to 1.3m if President Lula da Silva’s forecast is right. With a population of 190m this is not an enormous percentage increase, however for a country with a lower base salary and standard of living, these figures bring much needed help. More than the economic ripple throughout Brazil, these figures also bolster the growing confidence of a country that is now realising its full potential.
“Brazil is going through a magical moment in its economic life” Lula said, “At a time when the world is facing unemployment, we created 1.3m new jobs this year of crisis”. Lula was attending an event with automobile manufacturer Ford to unveil their investment in the country’s northeastern state of Bahia.
As the world’s 5th largest landmass, one rich in natural resources from oil to minerals to biofuel crops, with new offshore oilfields recently discovered and increasing mineral demand from Asia, Brazil’s economic growth has already returned to an annualised rate of 5% of GDP. Along with established manufacturing industries from aircraft to mobile phone manufacture, Labor Minister Lupi expects to create a further 2m jobs in 2010.
When Brazil’s growth rates, resources and economic stability are compared to the collapsing developed economies it is evident that Brazil’s meteoric rise will occur far sooner than predicted. Goldman Sachs originally forecast that Brazil would become a major player around 2040, according to growth rates in 2001. What a change 18 months can make. Unless France and Britain can pull themselves out of their current spiral, and sort some serious fundamental economic challenges ahead, then Brazil will be recognised as one of the most powerful countries within the decade. Watch this space.
