This paper I am writing is concerned with the economic considerations of a South American country and shall analyze the impact of an economic concern as followed on this particular South American country that I have chosen and I will identify the trend of the economic concern with the specified region and basis of data sets that accumulated from the source. The South American countries have a major impact on the American Economy and the concern of one particular country raised our bodies of knowledge regarding the economic trend involved in the particular country and was found to have its impact on overall economy as well. The South American country I have chosen to do research on was Brazil. Brazil is the largest country in South America. The capital of the country is Brasilia, and the currency is Brazilian real. The language of the country is Portuguese.
The shown population of the country is 196,655,014 this was in the year of 2011. The fifth largest country in the world. Brazil is one of the countries where the significant amount of rice sugar cane and tobacco came from. The Brazilians prefer to have face to face meetings for their written communication and with this commitment it allows them to know about the particular person who they are going to do business with. The Economic concern that I chose is (GDP.GDP) which stands for the gross domestic product. With the total cost of all finished goods and the services produced in the country through a particular period of time with GDP. This means the sums of the profits added at the level of production. the GDP is classified into 3 different ways which gave identical results (Sub hash C. Jain, 2007) first GDP is equal to the total expenditures of the final goods and the services produced within the country, Brazil in a particular period of time. Second it is also equal to the sum of the value that was added at each and every level of production by the industries.
Thirdly, as stated this was equal to the sum of the income generated by production such as compensation with employee’s taxes and production and with importing less subsidies with the gross operating surplus. The Gross domestic product known as (GDP) in Brazil worth’s to about 2476.65 billion U.S dollars in 2011. Brazil has the GDP value of 3.99 percent of the world’s economy. The World Bank group has also reported the GDP of Brazil. When making any decisions the gross domestic product (GDP) and the output gap are the most important for them and their variables that the agents take into account. Basically from the years of (1960-2011). Brazil GDP averaged out for 469.5 U.S billion and reached the all-time highs of 2476.7 billion in the month of December 2011 and with a record low of 15.2 US billion in December 1960. The real growth rate of Brazil’s GDP was 2.7% (2011 est.) 7.5% (2010 est.) -0.3% (2009 EST.).
The real growth rate of Brazil GDP exactly means that the GDP growth on the annual basis has been adjusted for the inflation and was expressed as the percent. The decisions of consumption, real and financial investments, and in particular, monetary policy are used here. The GDP and the output gap are the main economic measures considered to be as are. GDP is the major activity recorded in the economic all though the proper conductions of the monetary policy required a larger information set of the economy of state. The output gap has the key concept in monetary policy and the decisions are allowed by us to to find out about the actual versus potential economic growth. For instance a monetary policy reaction is caused by a positive output gap that has happened. The base year is country specific and the annual percentages of the constant price GDP are year from year changes included.
The first step wanted of GDP to have an organized real time GDP set data for Brazil. Quarterly data are used by us and the seasonally data adjusted started in (1990). The first vintage refers to (1996). Last was referred in (2008). By the mythological GDP released in 2007. There are two vintages referred here. The referring to the 2006 are using the previous methodology and under using the new one. Which both are released in March of 2007? With this data set it has been developed by using publications of the national institute of geography and the statistics included (IBGE) as their source. In particular, by the involvement of monetary policy the GDP growth takes its place. The GDP is a variable followed by the closely economic agents and the policy makers. In regards the most relevant one to decision making is the latest available GDP data point which refers to the most recent period. (NANNO Mulder 2004). Which was also considered to one more subject of revisions.
When the annualizing of the state of the business cycle the results of the work points of importance of using a larger information set included the other economic concern. Normally by employing more information of the data set about the economic activity recorded and all the prospects involved. It is found that in general, the effect of both the GDP revision and the samples increases play a very important role. The GDP data revisions explains the magnitude of the total of the revisions of the output gap. The revisions indicators for Brazils output gap are less unfavorable then those recorded by studies for other countries. The Brazilian indicators have determined well the presence of the limitations, in the real time output gap that estimates. This had very important roles for the monetary policy. I really need to compare Brazil with Columbia since they are the well-known South American countries listed. Columbia reaches top most of the time between the two countries.
They had some trends with data sets besides the cash surplus and the deficit and annual growth. These two sets have milder sets between data finally proven facts that Columbia has become better standing with more financial power and their GDP results were stronger outcomes. The output gap has estimated and obtained using four method’s such as the Hedrick-Prescott (HP) filter linear trend known as (LT) quadric trend known as (QT) and also the harvey-clark of the unobserved components (HC). Employing the more information intends to reduce the risk of being associated with the use of series subjected to revisions. We organized real time data set for the GDP data set of Brazil. The major information for the economic activity is the GDP with the key concept of monetary policy with decisions of the output gap. Which has allowed us to identify the actual versus potential economic growth.
An example, a positive output gap leads to monetary policy reaction. The GDP are used for the monetary policy investments. With real investments and decisions of consumption. Large information of the state of the economy is required for the monetary policy. The main economic measure considered was the output gap. The GDP often adds some new observations to the list and real time data. (Rebecca s Leman, 2008) the growth domestic product of Brazil may have expanded at 3.26 percent this year according the estimation of the World Bank which was surveyed of about 100 analysts has been published today and was down from 3.3 percent this week of time. Economists maintained their estimates the gross domestic product grew 2.7 percent and 7.5 percent. Inflation Statistic Table
The inflation and stability rate of the economy were closely related to one another and was required closely concern in orders to be able to stabilize the economy. Brazils increasing trend provides the threats for its future concerns and they show by this information that the government needs to really regime in orders to have the economy stabilized and to be able to achieve the economic growth in the world this concludes my essay on the South American countries and their concerns within.
Sub hash. C Jain (2007). Emerging economies and the transformation of the internationals. Nanno Mulder (2004). Trade and competiveness in Argentina, Brazil and Chile. Rebecca S Leman (2008). An analysis of income inequality in Brazil and the government.