Brasil's Economy Essay

476 WordsApr 12, 20152 Pages
Brazil is the largest and more populated country in South America. It is the country with the fifth largest geographical area. It is the largest economy in South America, ad gifted with a wide variety of natural resources. It has a large and well-developed agricultural, mining, manufacturing and service sectors. Agriculture accounts for about 5 percent of Brazil’s GDP and 35 percent of its export earnings. Brazil is the largest export of sugar cane, coffee and tropical fruits. Brazil also is a large producer of soybeans, corn, cotton, cocoa, tobacco, and forest products. Industry accounts for one-third of GDP with sectors raging from automobiles, machinery and equipment, steel, textiles, cement, petrochemicals and consumer durables. The country’s services factor is diverse and accounts for 65 percent of the GDP. It includes telecommunications, banking, commerce and computing. Brazil is on the leading producers of hydroelectric power having the largest rainforest in the world. In 2002-2003 Brazil’s economy came under great stress. Its GDP growth declined harshly to 1.1 percent, and inflation increased to 14.8 percent as a result of a consistent depreciation of its currency (real). In 2004 Brazil has shown a strong economic growth due to a favorable external environment, strong economic policies, and reforms to taxes, pensions and bankruptcy legislation. These economic modifications made consumer assurance rise along with Brazil’s GDP to an annual average rate of just about 5 percent. Brazil kept being cautions with its monetary policies and maintained inflation low at single digits. Between 2004 and 2008. Earlier in 2009 due to the global economic crisis, commodity prices and external demand decreased significantly. It has already been improved thanks to the government quick action to the global crisis. In 2009 even though the GDP growth was still declining it

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