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Home Publications Blogs Beat the Press It Is Brazil's Bloated Financial Sector, not Its Growth, that Attracts Immigrants

It Is Brazil's Bloated Financial Sector, not Its Growth, that Attracts Immigrants

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Sunday, 05 February 2012 06:17

The Post ran a piece on the growing number of foreigners who are going to work in Brazil, especially in its financial sector. It attributed this in part to Brazil's rapid growth, which it reports as averaging 4.5 percent since 2004.

According to the IMF, Brazil's growth has averaged 4.1 percent over this period. That is not especially fast for a developing country. Chile averaged an almost identical 4.0 percent over this period while Venezuela grew at a 4.5 percent rate and Argentina grew at a 7.3 percent rate.

If Brazil is attracting a large number of skilled workers from abroad it is primarily because of the lack of domestic supply, not rapid economic growth.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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