Brazil in recession, according to the Central Bank's economic activity index

Thursday, August 20th 2015 - 06:32 UTC

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Economic activity in Brazil fell more quickly than expected in June, central bank data showed on Wednesday, adding to evidence that the once-booming economy is suffering a painful recession. The Brazilian central bank's IBC-Br economic activity index fell 0.58% in June from the prior month, the bank said in a report released on Wednesday. Read full article

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Skip
Hands up someone who lives in a country that is currently in recession.....

Not me!
Aug 20th, 2015 - 09:47 am - Link - Report abuse 0
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ChrisR
@ 2 Skip

Give it a bit of time, you never know.

Hands up anybody who is surprised that Brazil are in recession.

No, I didn't think so.
Aug 20th, 2015 - 06:00 pm - Link - Report abuse 0
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Skip
ChrisR

I'll never claim that Australia is recession-proof. Indeed, no country is. Even China which seems to cause people to suspend beliefs and believe in some new economic paradigm.

Recessions are actually good for a country. The nature of a market economy is that it builds up imbalances during growth and recessions allow these to be rectified and difficult reforms palatable to the population.

Australia is currently host to an extremely pathetic crop of politicians on both sides of the spectrum. Our long boom has reduced them to squabbling school children because we are prosperous no matter what they do.

We need a recession to reform.

However we aren't in one and there is no prospect on the immediate horizon. Which is perplexing when you consider the dominant memes over the last decade:
1/ the BRICS are on an unstoppable upward trajectory economically and will therefore increase their hard and soft power at the expense of the west and with their youth and dynamism the west will decline.
2/ Australia's entire prosperity is built and contingent on China. We don't innovate nor are we productive, instead we just dig it up and ship it out. And eventually we will be reduced to a Chinese vassal and powerless to control our own future drowning under the weight of debt.

The reality is starkly different. The BRICS are all floundering or in recession. Their growth proved to be a bubble that has burst or is deflating rapidly. China's debt load is unbelievable as are its growth statistics. India is still navel gazing with most people unable to find a toilet, while Russia and Brazil are mired in crony capitalism and recession. And with the price of iron, coal and other exports hitting rock bottom, Australia is still managing to grow.

This isn't the reality that Russians, Indians, Chinese and Brazilians have been ramming down my throat for the past decade.

The BRICS need major reforms. What's the bet they try to avoid them.
Aug 20th, 2015 - 11:16 pm - Link - Report abuse 0
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ChrisR
@ 3 Skip

Good post.
Aug 21st, 2015 - 08:03 pm - Link - Report abuse 0
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Skip
Thanks Chris.

Egotistically, I don't want a recession.
Personally, I won't be affected by a recession.
Pragmatically, it would be the best thing that could happen to this country right now.
Aug 21st, 2015 - 09:55 pm - Link - Report abuse 0
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