Economic and political scenario: what to expect in the coming years?

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Anyone who has a business in Brazil knows how difficult it is to maintain it with high taxes and constantly changing legislation. Not to mention the economic and political upheaval that the country has been experiencing in recent years.

In 2017, economists were already able to identify modest growth in the country's economy , with a GDP (Gross Domestic Product) of 1%. This was a major victory, given that between 2015 and 2016 the economy shrank by 3.5%. The outlook for 2018 and 2019 is very encouraging. According to experts, after only two years, Brazil will return to what it was before the crisis.

This information is of fundamental importance for job seekers database entrepreneurs. After all, with the economy heating up, we can identify greater financial gains in the future and, most importantly, good investments.

Let's now look a little more at this subject.

What to expect from the economic and political scenario in 2018?
Business owners can rest easy, as the worst phase is over. The Selic rate, the country's basic interest rate, has been falling. At the beginning of the crisis, it reached 14.25% per year, and currently, according to the Central Bank of Brazil (BACEN) , it is at 6.5%.

Unfortunately, unemployment has not yet fallen as much as we would like, but it is below what it was a few years ago. In March 2017, the unemployment rate peaked at 13.75% per year. However, it has already begun to show signs of improvement, albeit timidly: in May 2018, the rate was 12.6%.

The trend is for this number to fall further. As the economy strengthens, more investors will invest money in Brazil, which will generate more business and, consequently, more jobs.

And what is the scenario for 2019?
Many people are betting a lot on 2019, but we should not place too many expectations. In 2018, GDP will only rise enough to offset inflation in 2017, which was quite high. And, unfortunately, the forecasts for GDP in 2018 may not be met due to the truck drivers' strike in the second quarter of the year.

The economic and political outlook for 2019 is still quite uncertain, mainly due to the direction that Brazilian politics may take with the election results. What many experts suggest is that, if a reformist candidate wins the race, it is very likely that 2019 will be an excellent year for the country, with a GDP of 3.2% .

According to these same experts, a more radical government could lead Brazil to stagnation. In this scenario, inflation will tend to increase, along with the Selic rate, and GDP will remain at just 1.3% during the four years of the term.

What to do?
For business owners, this is a time of doubt. In this case, the best thing to do is to act cautiously and seek guidance from a professional in the field. Waiting for the results of this year's elections to make a large investment can be a great way to avoid financial problems in the future.

What about you? What do you think about the country's current economic and political scenario? What are your expectations for the coming years? Leave your comment!