Brazil
Alexus Smith
Overall Score: 56.6 World Rank: 118
Brazil Quick Facts /United State
- Population: 193.3 million/316.4 million
- GDP: $2.4 Trillion/$16.8 Trillion
- GDP: 2.3% growth/1.9% growth
- GDP: 2.6% 5-year compound annual growth/1.2%
- GDP: $12,221 per capita/$53,101
- Unemployment: 6.6%/7.5%
- Inflation: 6.2%/1.5%
- Foreign Direct Investment: $64.0 billion/$187.5 billion
7 Major Sources of Economic Progress
Low Tax Rates
I took a screenshot of Government spending for low tax rates. At one point on the graph, Brazil was mostly free and above average. It once went up to completely free, but then fell down again. Brazil is now at mostly unfree with the Untied States.The government spending for Brazil only went down because the public is spending 40.4% of the GDP and the public debt is about 66% of the economy.
Limits on Government Regulations
I took a screenshot of bussiness freedom for the limits on government regulations. Brazil started out mostly unfree with their bussiness freedom. In the early 2000's, its freedom went up to mostly free, but the dropped again. Now Brazil's bussiness freedom is under average. The decrease happened because of inflation and because the cost to pay the empolyers adds to the cost of doing bussiness.
Free Trade
I took a screenshot of trade rights for free trade. Brazil's trade freedom was never free. Itss been at average this whole time and is nothing like the UK or the US free trade. Even thought it is low, the trade freedom has increased a little. Its like this because Brazils tariff rate is 7.7% and even though they want to improve it, they can't right now because that determines the import of goods and services.
Legal System
I took a screenshot of Property Rights for the Legal system. Brazil started off lower than the average in their property freedom. Then it finally increased higher than the average. Sine 2005, the rate of the property freedom has been the same and still above average. The only reason Brazil is like that because some parts of it has state funding and the public services remain deficient.
An Efficient Capital Market
I took a screenshot of the investment freedom for the efficient capital market. Brazil's investment freedom is lower than the average. It eventually increased over time, but then fell back down below average. The only reason why Brazil is below is because their foreign investment is aviation and the other sectors is limited.
Competitive Markets
I took a screenshot of an article talking about Brazil's competitive market. Brazil is ranked the least competitive out of its area. They are now ranked 51 overall. The only reason why they aren't competitive is because Brazil has high cost of labors compared to other countries.
Monetary Stability
I took a screenshot of part of the background information from the site for the monetary stability. It talks about how it declined half of the 10 economic freedoms. It took money from their government and made almost all things decrease. Brazil doesn't have freedom in anything anymore.
Restore Their Economic Growth
In this video, its talking about how Brazil is trying to build up its economy even though it is low. Brazil is exporting oil to different countries, but Levy believe cheaper oil with help out Brazil's economy. Joaquim Levy thinks the $50 oil is a little to much for Brazil, but they can work with it. China's economy is still growing and getting better compared to Brazil, but Brazil is exporting soybeans and things to China which is helping China's economic growth. Their inflation is really high and they need economic growth badly. Joaquim Levy believes that they can lower the inflation and can restore their economic growth.
These three resources is what they export the most to other countries.