Brazilian Economy’s Boom
Brazil owns an economy directed towards the free market and the export and nowadays it is on the 9th place in the world and on the 1sr place in frame of the countries in Latin America. Internal economy: The service sector has the biggest weight of 67.7% in PIB frame followed by the industrial one with a share of 25.8%. The agriculture represents only 6.5% of PIB. The manpower owned by Brazil is around 95 million (from a total population of about 195 million inhabitants) shared as follows: 20% in agriculture, 14% in industry and 66% in service sector. Due to the scientific and technological development of Brazil, this country is very attractive for the foreign investors, the average being somewhere around 2- billion $ comparing to the average value of 2 billion $ according to the years 1990 – 2000. External economy: Lula administration used the solid increase of the global demand in the last years in order to decrease the external duty, to smooth the profile of the date of payment of the debt and to improve the interest dynamics and the currency. The massive capital influxes have led to the increase of the currency reserves at 245.8 billion $ (the equivalent of the importers’ value for more than a year). However, the current account deficit will reach about 3.5% of PIB, and even if the foreign direct investments could not cover this deficit, we do not see any problems at horizon in its financing. Fiscal sector: even if the government has managed to maintain most of the macro-economical indicators in positive values, the lack of certain tools of limiting the public expenditures was translated by a continuous increase and a damage of the report between the public debt and PIB across the last years. Actually, the gross public debt (63% of PIB in 2009) stays at a relatively big level comparing to other countries whose credit ranking is at least equal to BBB-. In addition, at a level of 10% of PIB, the financing needs of the budgetary sector (governmental deficit and damping) are relatively big with the other states in the region; however, the very solid intern market will certainly be able to carry this fiscal charge. The second phase of the National Programme of Accelerating the Economical Increase (PAC 2) was approved and the government has extended its projections related to the expenditures in the social development and infrastructure at a level of 886 billion $ between 2011 and 2014.
Year of publication: |
2010
|
---|---|
Authors: | MĂRCULESCU, Gheorghe CARALICEA |
Published in: |
Annals - Economy Series. - Facultatea de Ştiinţe Economice şi Gestiunea Afacerilor, ISSN 1844-7007. - Vol. 3.2010, November, p. 241-246
|
Publisher: |
Facultatea de Ştiinţe Economice şi Gestiunea Afacerilor |
Subject: | Brazil | economy | First National Bank for Development (FNBD) | inflation |
Saved in:
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