Brazil's current conditions
Brazil's Current Conditions
Table of Contents
1. Introduction
2. Current Conditions
GDP
Unemployment
Inflation
Exchange Rates
3. Causes of Current Conditions
Debt
Stabilization and Reform
The Real Plan
4. The future
Projections
5. Conclusion
6. Bibliography
Introduction
The purpose of this paper is to analyze Brazil's current economic conditions using statistical data, economic theory, and implemented government policies. We intend to discuss the current condition of Brazil's economy, the causes for its current condition and future projections.
In the early 1980's, Brazil had an emerging economy that looked strong and promising. However, looks can be deceiving and they were, for Brazil has failed to become economically strong.
Under a military regime in the 1960's, Brazil had a built-in Real depreciation effect. This allowed Brazil to control inflation successfully. However, the oil shocks of the 1970's led to a debt crises, extreme inflation and stagnation. In the wake of the debt crisis, many attempts made to stop inflation have failed. Most of the plans introduced new money and higher bouts of inflation followed each of them.
The current plan called, the Real Plan is struggling to accomplish what the other plans have failed to do—stop inflation. The Real Plan has, been a major success in decreasing inflation, and increasing economic activity. Although in 2002 it failed to meet its targeted goals due to the confidence crisis and global risk aversion.
Current Conditions
GDP
Years GDP growth per capital Year GDP Annual Growth in %
1965-79 5.9 1992 -0.3
1980-93 0.3 1993 4.5
1991-01 1.5 1994 6.2
2000 3.1 1995 4.2
2001 0.2 1996 2.5
2001-05 1.6 1997 3.1
1998 0.1