| Brazil moving ahead |
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| World Affairs Talk | |
| Monday, 18 June 2007 | |
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The sustained economic growth saw the employment figures rise, which will help drive the property market and attract larger numbers of foreign investors in the months to come. International Monetary Fund figures show that financial market conditions in Brazil are currently the best in many years. Despite the successes, vulnerabilities and challenges remain in Brazilian economy. For example, public debt in the country is still high and sensitive to global financial conditions. Brazil has a free market and export-oriented economy. Measured in purchasing power parity, its Gross Domestic Product surpassed a trillion dollars, making it the ninth largest economy in the world and the largest in Latin America. The country’s scientific and technological development is argued to be attractive to foreign direct investment, which has averaged S$ 20 billion per year the last years, compared to only US$ 2 billion/year last decade, thus showing a remarkable growth. The agricultural sector, has also been remarkably dynamic. For the last two decades, this sector kept Brazil amongst the most highly productive countries in areas related to the rural sector. The Brazilian Census Bureau, recently adjusted its methodology for measuring GDP growth to better reflect activity in the informal sector and the growing importance of technology and financial services in the economy, among other factors. An industrial power with the largest population in Latin America and the Caribbean, Brazil has made big strides in reducing social and economic inequality, which are both cause and consequence of the poverty that continues to afflict millions of people. The country also rose to the challenge posed by the single biggest health threat in the modern world, pioneering an anti-HIV/AIDS strategy that became an international model by guaranteeing universal access to retroviral medication. Despite Brazil's significant recent advances, the poorest one-fifth of Brazil's 182 million people account for only a 2.4% share of the national income. Brazil is second only to South Africa in a world ranking of income inequality. Other challenges include creating jobs and improving human capital stock and labour markets, continuing and sharing benefits of agricultural growth, and reconciling development and environment in the Amazon. Brazil's impressive economic achievements over the last four / five years reflect the Brazilian authorities' continued pursuit of strong macroeconomic policies and steady progress with structural reforms; and the cautious monetary policy kept the inflation within the target band despite few supply shocks. Share & Bookmark             |
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| Last Updated ( Tuesday, 19 June 2007 ) |
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