Brazil’s economy grows by less than world average over last ten years

23 March 2006

Sao Paulo, Brazil, 23 March – Over the last ten years the Brazilian economy has grown by less than the world average due to a low level of investments, a study presented Wednesday in Sao Paulo has shown.

The study from the National Industry Confederation (CNI) says that Brazil’s Gross Domestic Product (GDP) grew by an average 2.2 percent per year between 1996 and 2005.

In the same period, the world economy grew by an average annual 3.8 percent.

This difference was apparent last year when Brazil’s economy expanded by 2.3 percent as compared to a world average of 4.3 percent.

In the decade under analysis the Brazilian economy grew a total 22.4 percent, while the world economy expanded by 45.6 percent.

“Brazil invested very little compared with the world average, especially in relation to emerging economies in Asia,” the report says.

Investment in Brazil between 1995 and 2004 represented 19.3 percent of GDP, against 32.6 percent of GDP in Asia’s emerging economies.

Average annual investment for the world economy was 22.1 percent of GDP.

CNI says that the poor performance of the Brazilian economy is reflected in the lowered average income of the Brazilian population.

In the ten year period under study, per capita income in Brazil increased an average of 0.7 percent per year, as compared with a world figure of 2.6 percent.

The study points out that if current growth trend are maintained China’s per capita income, which was US$5,530 per year in 2004, will double in the next 10 years and overtake average earnings in Brazil. (macauhub)