In 2016, the GDP of Brazil declined quite a bit. The PMI was at a multi year high and they made a record of 7.1 billion trade surplus, but the dynamics were not great since there was some increasing in the labor market. Brazil’s budgetary issue is caused from high inflation, political paralysis, and widening budget deficits that have just increased their debt. The trade market is a positive thing for Brazil’s economy since the value of the imports and exports add up to twenty seven percent of their GDP, when the average is around seven or eight percent. Corruption scandals have helped lead to Brazil’s decline in the World Economic Forum’s 2016 Global Competitiveness Index. The Petrobras scandal is widely lead by many members of the PMDB party.
