Sunday, September 25, 2016

An Overview of the Brazilian Economy

     South America has natural resources and they are experiencing rapid growth in internet connectivity rates. The prices paid for the natural resources are regulated by the International Monetary Fund. The mechanisms to allow for economic growth involve market based prices of natural resources and efficiency in the distribution of agriculture. The region is experiencing a noticeable political shift away from something and toward something else.
     Several countries in South America are prosecuting government officials in criminal courts. There have been high profile allegations against the Brazilian government for corruption in recent weeks. President Dilma Rousseff has been impeached and found guilty of financial crimes. Former President Luiz Lula da Silva has been charged with financial crimes. Former House Speaker Eduardo Cunha is facing criminal charges for financial crimes.
     In Argentina Former President Cristina Kirchner is facing criminal charges for financial crimes. Chile is prosecuting former military officers for criminal behavior that is not financial in nature. The crimes in Chile were committed during the tenure of President Augusto Pinochet during the 1980s.
     The trials in Brazil pertain to two sources of corruption including, (1) Peterobras which is the state-owned petroleum firm, and (2) Bolsa Familia, a 2003 government social welfare program from which funds have been siphoned. Former President Luiz Lula da Silva was the architect of Bolsa Familia and Former President Dilma Rousseff was at the time an aide to the Lula da Silva government. Brazil is a large country with a large economy and they would be greatly affected by slight changes in the commodities markets.
     Additionally the Brazilian economy has seen fluctuating trade balances and decreasing exports. In 2011 Brazilian exports totaled $256b USD and imports totaled $226b USD. Brazilian net trade in 2011 was a $31b USD surplus. In 2012 Brazilian exports decreased to $243b USD while imports remained steady at $223b USD. Therefore from 2011 to 2012 Brazil enjoyed a lessened trade surplus. Brazil reported a trade surplus of $31b USD in 2011, $19b USD in 2012, and $3b USD in 2013. In 2014 Brazil reported a trade deficit of $4b USD and then in 2015 Brazil reported again a surplus of $19b USD. In 2015 Brazilian exports totaled $191b USD and imports totaled $172b USD.

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