Brazil's Post-Pandemic Economic Recovery: An Analysis of Social and Environmental Progress
Abstract: This article examines Brazil's economic recovery after the COVID-19 pandemic, highlighting advancements in growth, poverty reduction, and environmental responsibility. Using data from the Center for Macroeconomic Research (MADE) and the Central Bank of Brazil, it analyzes the country’s transition from crisis to sustainable growth.
Introduction
Brazil, one of the largest democracies and a Latin American leader, has shown significant recovery post-COVID-19. This article explores improvements in economic indicators, poverty alleviation, and environmental responsibility.
Methodology
Data from MADE and the Central Bank (2020-2024) were analyzed using time series and percentage comparisons to evaluate progress in key areas.
Results
Findings reveal economic recovery trends. In 2022, 44% of Brazilians lived in poverty, but reductions followed. The trade balance surplus ranged between $50 million and $65 million from 2020-2022, despite challenges posed by currency devaluation.
Discussion
Post-pandemic policies shifted from neoliberal approaches, significantly benefiting low-income families. Over 9.6 million people exited extreme poverty due to social programs and a weaker dollar against the Brazilian real.
In 2022, 27 million Brazilians lived in extreme poverty, with another 62.9 million in poverty. Despite high demand for iron ore from China, currency devaluation raised domestic prices, leading to inflation exceeding 10.7%. Government external debt rose from $148 billion in 2018 to $265 billion by 2022.
Foreign direct investment (FDI) dropped by over 50% in 2020 compared to 2019. High interest rates to curb inflation reduced consumer spending, closing over 1 million businesses, predominantly family services. By 2024, FDI reached $7 billion, marking recovery.
Inflation fell to 3.93% in March 2024 from 10.7% in 2022. The trade balance surplus surpassed $80 billion, with an 11% growth forecast. Social programs significantly reduced poverty, benefiting nearly 40% of those in extreme poverty as of 2022.
Public health improvements also supported economic recovery. By 2024, Brazil dropped from 7th to outside the top 20 countries for unvaccinated children, reducing potential healthcare costs under the Unified Health System (SUS).
Conclusion
Brazil showcases significant recovery marked by economic growth, poverty alleviation, and environmental responsibility. Investments in the Growth Acceleration Program (PAC) for ecological transition, totaling R$1.7 trillion, highlight this progress. Public health improvements further solidify Brazil’s path toward sustainable and inclusive development.
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