RIO DE JANEIRO, BRAZIL – Brazil’s accession the Organization for Economic Cooperation and Development (OECD) could boost per capita economic growth by 0.4% per year, according to a study published by the Institute for Applied Economic Research (IPEA).
Brazil’s accession to the OECD would encourage capital, investment and international trade flows, boosting Gross Domestic Product growth by about US$7 billion per year, IPEA said in a report.
Brazil’s per capita GDP has plummeted in recent years as the economy failed to fully rebound from the 2015 to 2016 recession, while the Brazilian currency has depreciated against the dollar.
According to Central Bank data, per capita GDP at constant dollar prices last year stood at US$6,819.97, the lowest since 2006 and about half of what it was at its peak in 2011 of over US$13,000.
The drop was notably steep last year, when the real lost almost 30% of its value against the dollar. Central Bank figures show that per capita GDP in 2019 stood at nearly US$9,000.
In local terms, per capita GDP in Latin America’s largest economy last year stood at R$35,172, just below 2019’s record high of R$35,247, according to the Central Bank.
Economy Minister Paulo Guedes had previously said he expects Brazil to enter the OECD by later this year, while Central Bank President Roberto Campos Neto said the monetary authority’s recent autonomy should help the process.
Source: Isto É Dinheiro