Brazil’s macro economic situation before 2011
During the past decade, Brazil had a government that focused on keeping inflation from shooting up, reducing unemployment and raising amount of money workers would earn. AS for the new president, his “major priorities of his administration included reforming social security, pension and tax policy, combating hunger and poverty, and enhancing educational opportunities, particularly for poor children”. With the reforms that have been put into place, Brazil had a superb ten years of economic growth. ( E. Bradford Burns, 2015) In 2006, the president Lula “enacted reforms to increase public investment and control spending. Agricultural and mining operations persistently expanded, and foreign investors and major trading partners showed renewed interest in the country”. Since 2003, nearly 40 million Brazilians were lifted out of poverty, joining the ranks of the middle class and buying consumer items like televisions and cars. This in turn spurred more economic growth culminating in a 7.5% GDP growth rate in 2010 that was the country’s best economic performance in 25 years. But since 2010, Brazil’s economic growth, though still on the positive side, has been declining. (E. Bradford Burns, 2015)
The gross domestic product (GDP) in Brazil was worth 2476.69 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of Brazil is roughly equivalent to 3.99 percent of the world economy. Historically, from 1960 until 2011, Brazil GDP averaged 469.51 billion USD reaching an all time high in December 2011. The GDP is the measure of national income and output for a given country. (World Bank, 2015)
The inflation rate in Brazil was recorded at 7.31% in September 2011. Inflation refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of inflation are the CPI, which measures consumer prices, and the GDP deflator, which measures in...
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