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Emerging Market Economy is attributed to fast economic growth, and increased foreign investment, which is indicated by substantial economic data depicting the fast growth due to rising Gross Domestic Product per capita, foreign reserves and trade volumes. Therefore, the faster…
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Download file to see previous pages The country weathered the global financial recession, which had insignificant effects on Brazil economy; hence, it was one of the last to fall in to recession during 2008 and among the first to resume the growth in 2009. Brazil’s Gross Domestic Product has grown from 7.5% in 2010 to 2.7% 2011, and despite to the global hold back, the domestic market in Brazil have become strong, hence reducing vulnerability to the external crisis (The World Bank Group, 1). Therefore, the citizens of Brazil are benefiting from the stability of their economic growth, with relatively low inflation rate and improved social well-being.
There are limits of potential growth and significant advances in the economy, which are attributed to institutional reforms, noninflationary growth that is derailed by barriers, regulation and insufficiency in infrastructure and poor business climate (Jimenez, Gómez Sabaini and Podestá, 38). Quality of Brazilian government services concerning the expenditure is relatively lower than other middle-income countries, and country launched a growth acceleration plan in 2007, which focused on increasing investment in infrastructure, and offering tax incentives to facilitate economic growth. The plan led to a 7.5 % growth in 2010, and resilience to the crisis experienced in 2009, and insignificant recession among developed and emerging economies in 2011 (OECD, 3).
Nevertheless, the growth has facilitated challenges, whereby the country is anticipating hosting the World Cup in 2014 and Olympics Games, in 2016, hence this is requiring significant investment in urban and social development, and transport infrastructure. Moreover, Brazil has experienced substantial regional differences in the social indicators like health, infant mortality and nutrition (Sean, 1). There are richer south and southeast regions, which are experiencing reliable indicators than the poorer North and Northeast; thus, the poverty level ...Download file to see next pagesRead More
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