Brazil is the country that imports the least in the world, as a proportion of GDP. The newly released data from the World Bank shows how closed is the Brazilian economy, despite complaints from local businessmen about foreign competition.

In 2011, according to the World Bank, Brazil’s imports of goods and services were equivalent to 13% of its GDP. In a list of 179 countries, Brazil showed the lowest ratio.

Only in the BRIC group, for example, China has its imports-to-GDP ratio at 27%, India at 30% and Russia at 21%. Among the major Latin American economies, Mexico’s imports correspond to 32% of GDP, while Argentina and Colombia import 20% and 17%, respectively. Even the U.S., which is the largest and most diversified economy in the world, have a ratio of imports of 16%, higher than the Brazilian.

So, for everyone that wondered why Brazil is so expensive, the answer is now official: it’s because the country is the most closed economy in the world.

Source: ig

 

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12 Responses to World Bank: “Brazil is officially the world’s most closed economy”

  1. thiago says:

    With a import taxes rate about +60%, it’s not a surprise we’re far behind everyone else…

  2. gringo nao sabe nada says:

    Closed economy meaning no competition, monopolies, oligopolies and very cozy relations with customers and the state, greased by “one hand washes the other”. It will change but probably not in my life time. Oh well….I am still hopeful….maybe I can live a very long time.

    In the meantime, feliz carnaval!!!

  3. Jones says:

    Too expensive, Brazil!
    Think of your poor, how can they afford anything with such miserable wages and the prices so high.

  4. Sim says:

    Brazil doesn’t need to import energy and food as some countries. That might be an explanation.

  5. Arthur_c says:

    “So, for everyone that wondered why Brazil is so expensive, the answer is now official: it’s because the country is the most closed economy in the world.”

    what a superficial analysis, to say the least

  6. frank stein says:

    Brazilians are captives of corrupt and incompetent governments who pay extorsive taxes and where goods cost 3 times more with quality 3 times lower. However, carnival is in full force.

  7. Brazilian Bubble says:

    Good point!

  8. frank stein says:

    Brazil imports gasoline, diesel, natural gas and electricity from Paraguay. Many food items are also imported.

  9. Enki Ea says:

    Simplistic headline on a bull shit study from the World Bank as always. This guys from the World Bank are as corrupt as the government in Brazil so where is the credibility to talk/write about anything?

  10. Oscar says:

    Actually, Brazil does import energy. Petrobras can’t succesfully satisfy demand of gasoline and natural gas. The worst thing is that what PBR imports, it sells it at a 12% loss because of price controls.

  11. KevinR says:

    I’m slightly surprised that Brazil is the most closed economy in the world, although I’ve noticed for years how gross import taxes are.

    As a regular visitor there for many years I’m well aware of the appalling lack of choice in the shops, ludicrous high prices for a limited range of imported goods and of course inflation which runs at multiple times the level claimed by government.

    If the Brazilian govt want the country to really become a powerful global economy, it has to change its policies and realise that by protecting its domestic industry with import taxes, it simply allows domestics to avoid investment in R&D, productivity and product quality. And of course to price-gouge consumers. This is what is happening. And it acts against the interests of the poorer people who now pay ridiculous prices even for home made and home produced fresh produce. Based upon current prices/FX rates, I can buy Brazilian bananas cheaper in London than in Brazil.

  12. Simon says:

    Do you have a direct link to this world bank study?

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