Tuesday, February 19, 2019
Brazil Economic Growth Essay
Currently, Brazils economy can be said to be better than it was any(prenominal) 30 years ago. This is because of the sustained implementation of policies that aid the economy. However the reaping rate has been slowing down since 1980. From that time, there have been vulnerabilities in their universe sector balance sheet and the distortion of taxes. This has resulted from the monetary policy that has been use in the country (http//www.wilsocentre.org). The growth rate is at 2.7percent although they aim to annex it to around three or four percent. It is also affected by the high interest rates that are experienced in the country. Up to 1999, the rates were constantly increasing. This was because of the exchange rate stabilization program that was introduces and aft(prenominal) that they rose because of the destabilization policies. The policies were put in place to help sustain high inflation rate. This worked because since 1993 the inflation has been decreasing. A lot has actua lly changed during the brass of President Lula. Since their form of government is federative republic they have the mandate to use up the president from power through voting. The people in power wherefore have to ensure that they improve the economy and make good their promises so that they can be voted back. Brazil has been able to move up to rate 10 in the world economy scale. The gross public debt compared to the gross domestic product rates is very high. In June 2007, it had r to each oneed and 182 billion. The previous year recorded a debt rate of 157 billion. This is the debt owed to the creditors who are abroad (http//brazileconomy.blogspot.co). The governments foreign debt in the same time period rose from 64.8 billion to 71.2 billion. Although the ratio in the midst of gross domestic product and the gross public debt is skewed towards debt the fiscal surplus has been increasing. It has reached a level of 4.25 percent of the GDP because of the high interest rates. It me ans that the GDP is also increasing. Brazil concentrates on the production of iron and steel, chemicals, petroleum processing, railcar assembly and cement making (http//www.nationsencyclopedia.com). The motor vehicle assembly attention is the backbone of Brazilian economy. Through foreign investment and construction of some other plants the perseverance is expanding rapidly. The export sector contributes greatly to the growth of the economy. The export intermediary goods contribute 13.5 percent of the economy while the manufactured goods contribute 55 percent of GDP. Most of the intermediary goods are from the steel and iron industry and also the cement making industries. The Brazilian economy is controlled by both public and esoteric sector but leans more on the private sector. It allows foreign investment in its industries. It has a lot of natural resources including rocky oil, which it mines, and processes. Most of these industries are privately owned and the government be nefits from the taxes paid. It works tight with the United States of the States. It buys the Statesn treasures and as of June 2007 the share of Brazil of he America treasures had risen from 1.7 percent the previous year to 4.2 percent. The relationship between America and Brazil is therefore said to be positive because they buy from each other. America benefits from the Brazilian industries as consumers and also as investors and Brazil benefits in the same way.ReferenceBrazil Economy Watch Tuesday family eighteenth 2007. Retrieved on September 20th 2007 from http//brazileconomy.blogspot.com/BRAZIL INDUSTRY retrieved on September 20th 2007 from http//www.nationsencyclopedia.com/Americas/Brazil-INDUSTRY.htmlEconomic Policy and Prospects for Reform Lulas Second politics November 2006 retrieved on 20th September 2007 from http//www.wilsoncentre.org/topic/pubs/ThinkingBrazil.24.pdf.