The Economy of Brazil

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Table of Contents
Introduction3
Gross Domestic Product (PPP)4
Inflation5
Unemployment Rate6
Correlation of Inflation and Unemployment7
Correlation of Unemployment and Gross Domestic Product7
Correlation of Inflation and Gross Domestic Product7
Conclusion8
Appendix 18
Appendix 29
Appendix 410
Appendix 510
Appendix 611


Introduction
Brazil is a country of fast growth and development over the years, it is the sixth country with the highest nominal GDP which considered the leading economy in Latin American and the second largest in the western hemisphere. There are several economic events that trace the changes in the history of Brazil’s economy. Brazil was colonized by Portuguese in the 16th century when they enforced colonial treaty, trade policy which leads to the development the fallowing three centuries. The turning point for socioeconomics in Brazil was after World War II. Only 31.3% of Brazil’s 41.2 million populations lived in cities and towns, however by 1991 with the population of 146.9 million, 75.5% resided in cities. This results in Brazil having two of the world’s largest metropolitan centers – Sao Paulo and Rio De Janeiro. In 1992 the shares of the primary sectors decrease from 28% in 1947 to 11%. On the other hand the number of contribution of industry to GNP increased from 20% in 1947 to 39% in 1992 (Investment U). This was a sign showing that Brazil is shifting from heavy reliable on primary industries to secondary industries and value added goods. There were a wide range of products for domestic markets and international markets, which includes consumer’s goods, intermediate goods, and capital goods. Unfortunately in 1980s and 1990s the economy of Brazil was disadvantage because of the weak cunrrency, which at the same time caused Brazil economic growth at the time to restrain. Several attempts, was put into action by the government unfortunately failed. However stability grew stronger in 1994 when Plano Real was introduced. Although the plan sustained Brazil economics growth and provided rapid development for the country, there are still high levels of corruption, violent crime, illiteracy and poverty. After gaining independence in 1822 Brazil’s relationship with US strengthens especially with the trades because US imported four times more then it exports to Brazil making it one of the most significant producers. From then until now Brazil became the largest coffee producer, it responsible for 30% of the world coffee production (Thomas White). Although this figure shows that Brazil is a country with good economy, the real prove to show that a country has a healthy economic growth depends on three main indicators, which are Gross Domestic Products, Inflation and Unemployment Rate. Therefore this report will be explaining the fluctuation of those indicators and explain the reasons behind it as well as trying to find the relationship between them by observing their correlation. Gross Domestic Product (PPP)

The Gross Domestic Product growth rate provides a combined measure of changes in value of the goods and services produced by an economy. Brazil is one of the fastest growing and developing economies in the world. With large and growing agricultural, mining, manufacturing and service sectors, Brazil economy ranks highest among all the South American countries and it has also obtained a strong position in global economy. Historically, Brazil GDP Growth Rates average 0.76% and its can goes up to 4.50 % it mean the Gross Domestic Product is slightly high most of the time from 1996 - 2012 and a record low of -4.20 % in December of 2008. The Gross Domestic Product in Brazil expanded to 0.40% in the second quarter of 2012 over the previous quarter (Index mundi, 2012). Between 2002 and 2008, Brazil got a benefit from global growth with its demand force commodities, the production of which Brazil has an undeniable comparative advantage. Between August of 2002 and August of 2005, the...
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