Statistics of the Economic Boom

Brazil’s economy has grown and developed quite a bit since 2004.  This has caused a rise in employment and wages. The economy of Brazil is now the 7^th largest in the world in terms of GDP and seventh largest in terms of purchasing power. Brazil has fairly free markets. A free market is a market where there is no regulation by the state.

Among Latin American nations, Brazil’s economy is the largest. It is also second largest in the western hemisphere and one of the fastest-growing economies in the world. It has an average annual GDP growth rate of over 5%. The GDP is the market value of all final goods and services produced within a country. In Brazilian reais (modern currency of Brazil), its GDP was estimated at R$ 3.143 trillion in 2009. The Brazilian economy is estimated to become one of the five largest economies in the world.

The Difference in Time Periods

Brazil had weaknesses before the economic boom of 2004. These were mostly in regards to debts. Domestic debts went up quite a bit from 1994 to 2003. In 2006, this rise was controlled. The President did this by setting up economic programs to control taxes and boost public investment.

Today, Brazil’s industrial sector makes up for 3/5 of the economy of Latin American industrial production. Their scientific and technological progress is (debatably) attractive to foreign direct investment. This has recently averaged US$ 30 billion per year compared to only US$ 2 billion per year last decade. Brazil’s agricultural sector (agronegócio) has also been very lively. Its agricultural sector and the mining sector also brought about trade surpluses. A trade surplus is an economic measure of a positive balance of trade.  These trade surpluses in Brazil caused great financial increases.

Abundance in Natural Resources

Brazil currently has population of 190 million people and a wealth of natural resources. This has contributed greatly to the economic boom. They currently produce tens of millions of tons of steel, 26 million tons of cement, 3.5 million television sets, and 3 million refrigerators. About 70 million cubic meters of petroleum were being processed annually into fuels, lubricants, propane gas, and a wide range of hundred petrochemicals. Additionally, Brazil has at least 161,500 kilometers of paved roads and more than 93 Gigawatts of installed electric power capacity. Major industries in Brazil are textiles, shoes, chemicals, aircraft, steel, and motor vehicles. Their agricultural products include coffee, wheat, rice, and sugarcane.