Brazil, the largest country in South America, with the population of more than 200 million people. This country is known for their rich culture, tropical beaches, exquisite waterfalls, and the Amazon rainforest. Brazil is the 9th biggest economy in the world. And the country is gifted with a lot of natural resources. But even after this, Brazil has never reached its true potential of economic growth. This country's economic growth has been very unstable for the past 5 decades.
It was from the start of the 21st century, when Brazil's economy started to become more stable. And this was probably because of the commodity boom in the 2000's. At the same time, the domestic economy also became more dynamic. Cash transfers, a higher minimum wage, and credit growth resulted in strong growth of consumption.
Today the country is the world's largest producer of coffee, sugar cane and oranges, and also soy. The country attracts many multinational groups in the food, and biofuels industries.
The country has captured higher positions on some global value chains, such as technology-intensive agriculture, sophisticated deep-sea oil drilling, and the aircraft industry. But inadequate education, poor health conditions, and a lack of on job training, is preventing a large proportion of workers from increasing their productivity. Despite low average growth rates, the income of the bottom population grew by more than 6% annually in the 2000’s, owing largely to cost-effective social policies. Yet even after that Brazil has one of the highest income inequality rate in the world.
Another problem Brazil is facing is infrastructure. You see, Brazil has many mountainous regions, and also around 60% of its region is covered by the forest. Hence this creates major infrastructure problems. Plus impacts the country's exports. Due to this Brazil loses its competitiveness in the global market. And eventually this hurts their economy.
And if we talk about the FDI's, then due to volatile economic growth, lacking stability, and political issues the country is not good in this department too.
So this was the Brazilian economy. The country has potential, resources, and everything, but still the problems have been holding them back. For now we might call them the under achieving economy. Yet if they do the right things then they might reach their true potential of economic growth.

#brazileconomy #economics #Brazil

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