August 03, 20 - 11:33 am - LABS

In seven years, Brazilians will be 11% poorer, says LCA consultancy

Between 2013 and the end of 2020, the Gross Domestic Product (GDP) per capita will decrease from BRL 8,519 to BRL 7,559 and will have shrunk 11.3%, according to calculations the consultancy LCA, shows the news portal G1.

LCA calculations take into account quarterly GDP estimates and use the four-quarter moving average, which allows for a fairer comparison. For 2020 specifically, analysts consulted by the Central Bank’s Focus report, estimate a drop in GDP of 5.77%.

The arrival of the new coronavirus pandemic undermined the growth prospects of the Brazilian economy for this year. Between the end of 2014 and 2016, the country observed a strong recession caused by several macroeconomic imbalances and political turbulence during the Dilma Rousseff administration. In the next three years, there was only a timid resumption, unable to erase all the damage.