Brazil's productive force does not boost GDP, says Gilvan Bueno

A survey by Ibre/FGV shows that productivity per hours worked in Brazil declined in the first quarter of the year. Amid this scenario, the country fell seven positions in the world competitiveness ranking.

According to CNN Money columnist Gilvan Bueno on CNN Prime Time, Brazilian GDP growth, even if inconsistent, masks the problem of the country's lack of productive force. For him, the apparent economic expansion does not reflect a real advance in national productive capacity.

Growing GDP, but without a solid base
Gilvan Bueno explains that Brazil faces a contradiction: at the same time as it registers a drop in competitiveness and productivity, GDP is growing.

"In the last 40 years, Brazil has had a GDP that has been falling, it has not had constant growth", he stated.

According to him, much of this growth is driven by agribusiness, transforming the country into a producer of commodities, without attracting and retaining talent or generating greater productivity.

"Brazil has a GDP with a lot of income transfer, many tax exemptions, many considerations for some productive sectors that end up not bringing constant growth", he concluded.

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Source: CNN