1. BRAZIL
Macroeconomics
ECON224-1104B-22
Prof. Hector Morales
Victoria Rock
December 4, 2011

2. INTRODUCTION
As an employee of the World Bank, I have been asked to research an economic concern in a
South American Country. I have chosen Brazil for this research and will discuss the Gross
Domestic Product (GDP) and their situation.

3. BRAZIL
Brazil, located along the Atlantic Ocean in South America, is the fifth largest country in the
world and the seventh largest economy at market exchange rates as well as the eighth largest
in purchasing power. In 2007 they launched a four-year plan to spend $300 billion in order to
modernize its roads, power plants, and ports. (Brazil, 2011) Unlike most countries, Brazilians
need to know who they are doing business with before they can work effectively. They prefer
face-to-face meeting instead of written communication because it allows them the chance to
know the person they are doing business with. However Brazilians insist on drawing up
detailed legal contracts. To a Brazilian, the individual they deal with is more important than the
country. Since this is a group culture, it is important that you do not do anything to embarrass
a Brazilian. (Brazil - Language, Culture, Customs and Etiquette, 2011)
GROSS DOMESTIC PRODUCT (GDP)
The Gross Domestic Product, (GDP), is one of the measures of national income and input for
a given country’s economy. GDP is sometimes regarded as the sum of profits added at every
level of production, the intermediate stage, of all final goods and services produced within a
country at a stipulated time frame and it is rarely given monetary value. (Gross domestic
product, 2011) The basic formula for calculating the GDP is;
Y=C+I+E+G
Y= GDP
C= Consumer Spending
I= Investment made by industry
E= Excess of Exports over Imports
G= Government Spending (Calculating GDP, 2011)

4. BRAZILS SITUATION
According to the World Fact book put out by the CIA, “Since 2003, Brazil has steadily
improved macroeconomics stability, building up foreign reserves, reducing its debt profile by
shifting its debt burden toward real denominated and domestically held instruments, adhering
to an inflation target, and committing to fiscal responsibility. In 2008, Brazil became a net
external creditor and two ratings agencies awarded investment grade states to its debt.” When
the onset of the global financial crisis in September of 2008, Brazil’s currency and stock market
saw large swings as foreign investors pulled their resources out of Brazil. Although they
experienced two quarters of recession, they were one of the first markets to begin a recovery.
With consumer and investor confidence revived and GDP growth returned to positive, the
Central Bank expects growth to continue. (The World Factbook, 2011)
BRAZIL’S GDP
(In US Dollars, 2010)
GDP 2010 2009 2008 COUNTRY
COMPARISON TO
THE WORLD
PURCHASING $2,172 TRILLION $2,021 TRILLION $2,034 TRILLION 9 (2010)
POWER PARITY
REAL GROWTH 7.5% -0.6% 5.2% 30 (2010)
RATE
PER CAPITA (PPP) $10,800 $10,200 $10,400 102 (2010)
COMPOSITION AGRICULTURE: INDUSTRY: SERVICES: 67.4%
BY SECTOR 5.8% (2010) 28.8% (2010) (2010)

5. BRAZIL’S GDP IN COMPARISON TO OTHER SOUTH AMERICAN COUNTRIES

6. CONCLUSION
Brazil forms a major part of South American markets and is the largest economy on the basis
of absolute GDP. The Brazilian economy’s solid performance during the financial crisis and its
strong and early recovery has contributed to the country’s transition from a regional to a global
power.

7. REFERENCE
Brazil - Language, Culture, Customs and Etiquette. (2011, December 2). Retrieved from Kwintessential:
http://www.kwintessential.co.uk/resources/global-etiquette/brazil-country-profile.html
Brazil. (2011, December 2). Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Brazil
Calculating GDP. (2011, December 3). Retrieved from MindTool:
http://mindtools.net/GlobCourse/formula.shtml
Economy of South America. (2011, December 3). Retrieved from Wikipedia:
http://en.wikipedia.org/wiki/Economy_of_South_America#Annual_economic_growth
Gross domestic product. (2011, December 3). Retrieved from Wikipedia:
http://en.wikipedia.org/wiki/Gross_domestic_product
The World Factbook. (2011, November 15). Retrieved from Central Intelligency Agency:
https://www.cia.gov/library/publications/the-world-factbook/geos/br.html