ECONOMICS 232 BRAZIL- SA REPORT
In 2010, South Africa joined The BRIC and set its level of ambition not only as an African leader, but also as an emerging world class economy along Russia, China, India and Brazil. This report will analyze and look at the economic trends and fluctuations between the later and South Africa from the year 2000 to 2010 using released World Bank data.
According to the World Bank, South Africa GDP was of about one hundred and thirty two billion in 2000 while Brazil’s was at six hundred and forty four billion Dollars. Over the following decade 2000 – 2010, the two economies registered a considerable and equal improvement of their total production with a respective increase of 41 % for South Africa and 42% in the case of Brazil. The GDP per capita on the other hand increased at a lower rate over the same period. While South Africa leveled up by 22.4%, Brazil bettered its GPD per capita by 25 .6 %. This further entails a GDP yearly increase of $ 1095 /capita with regards to the former, and $1409/capita for the later. A better look at aggregate expenditure components will provide more detailed resources in explaining the above increase of GDP within the two economies. In 2000, South Africa and Brazil consumption by households ( C ) was about 63% and 64% of GDP, largely above the rest of the components where total gross capital formation ( I ) lied low with 16% and 18% respectively, and lastly a total government expenditure ( G ) of 18 and 19%. As it appears, the two economies spent relatively equivalent proportions of their expenditure aggregate component on GDP. At the...