Brazil's economy is suffering from very poor performance, with GDP growth for 2019 expected to be around 0.83%. However, due to the emergence of a possible risk of a global recession coupled with a change in Argentina's political landscape (moving from a neoliberal government, Mauricio Macri, to a more developmental government, Alberto Fernández).
With the global economy slowing down, Brazil must face even greater difficulties to get out of the scenario of extremely high unemployment (over 12 million unemployed people) and very little economic growth.
Even with the Pension Reform and the Tax Reform walking the Brazilian National Congress, which decided to act almost independently of the executive power, which through the often absurd speeches of President Jair Bolsonaro greatly harms any political coalition, the country will face economic difficulties to get out of the crisis scenario in which it finds itself.
In recent days, the outflow of foreign capital from the São Paulo Stock Exchange is higher since the one recorded in the global crisis of 2008. According to the website Terra, until the 15th of August 2019 (most recent data), the volume was negative in R$ 19.1 billion. In 2008, the red balance recorded in the year to the end of August was R$ 16.5 billion.
A direct consequence of the search for global security, this outflow of resources from the country will further weaken the Brazilian economy. To make matters worse, studies released this week indicate the collapse of investments in Brazil. Capital used to expand production in the country fell to the lowest level in 70 years in some sectors.
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