Global Economy, Economic Environment, Labor, Money & Finance, GDP
For years, protectionist policies helped Brazil build a fortress around its manufacturing base, which profited from a rapidly expanding domestic market over the past decade. Ever-rising purchasing power and the best credit conditions in decades fueled the demand for durable goods and housing, in turn stimulating most intermediate industries. A sort of virtuous cycle led to a broad-based manufacturing expansion that was interrupted in the wake of the 2008 global economic crisis. It took Brazilian factories more than a year to recover pre-crisis output levels, and manufacturing subsequently stopped growing. Three years have passed without genuine manufacturing growth in Brazil, despite the government’s protectionist stance that is ingrained in every sector of the economy.
Global Economy, Competitiveness, Government Policy, Economic Environment, Labor
Mexico’s prospects for reforms that would eventually unleash the country’s economic growth potential are on the rise since Enrique Peña Nieto was elected president in July 2012. Since the election and taking office on December 1, 2012, the president has focused his energy on a host of proposals, including ambitious reforms that would shake up an economy that has shown disappointing results on the growth front for two decades.