BRAZIL

ECONOMIC PERFORMANCE

OF BRAZIL Group Members:

Zohaib Ahmed L1F15MBAM0064Syed Zain Ali L1F15MBAM0140

Sheikh Abdul RehmanL1F15MBAM0100

INTRODUCTION 5th largest country 362,200.63 million US$ Foreign reserves “The Real” Bauxite, Gold, Iron Ore, Manganese, Nickel, Phosphates, Platinum, Tin, Clay, Uranium, Petroleum, and Timber

107 Million Labor Force (6th worldwide) 6.2% Unemployment Rate (64th worldwide) Part of BRIC Aircraft, electrical equipment, automobiles, ethanol, textiles, footwear, iron ore, steel, coffee, orange juice, soybeans and corned beef

Federation of 26 States, one Federal district and Municipalities

INTRODUCTION (CONT’D…)

This report

The economic performance of Brazil The overview of the economy from 1990 to 2014 Macroeconomic variables Descriptive analysis of each variable for average, maxima, minima

and standard deviation of the said 24 years Graphs about trends of each variable Correlation coefficients taken for each variable to see its results

when GDP growth (annual %) has been taken as the base variable in the selected range

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

05

101520253035404550

STOCKS TRADED 20.78

1.26

46.20

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

5

10

15

20

25

30

35

TRADE OPENNESS

15.16

22.43

29.68

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

2

4

6

8

10

12UNEMPLOYMENT 7.7

1

9.70

6.00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

-4

-3

-2

-1

0

1

2

3

4

NET EXPORTS

-3.41

0.17

2.73

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

-4

-2

0

2

4

6

8

10

GDP GROWTH7.53

-3.10

2.77

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

0.5

1

1.5

2

2.5

3

3.5

4

EXCHANGE RATE 1.65

0.00

3.50

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

1

2

3

4

5

6

FOREIGN DIRECT INVESTMENT2.33

5.00

0.18

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

-8

-7

-6

-5

-4

-3

-2

-1

0

1

2

BUDGET DEFICIT -2.34

1.51

-6.93

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

500

1000

1500

2000

2500

3000

3500

INFLATION

CPI GDP DEFLATOR

341.25

2947.73

3.20

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

2000

4000

6000

8000

10000

12000

14000

GDP PER CAPITA

2578.21

13039.12

6039.93

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

500000000000

1000000000000

1500000000000

2000000000000

2500000000000

3000000000000

GDP

REAL NOMINAL

1132792313916.70

400599250000.00

597629553941.93

859781625198.83

1211871953579.40

2614573170731.71

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

5

10

15

20

25

SAVING PATTERN 19.24

22.99

15.09

CORRELATION CO-EFFICIENT

Variable

UnemploymentInflation, CPIInflation, GDP deflator

Net ExportsExportsImports

Numeral

-0.02-0.25-0.21-0.090.300.30

Relationship

• Very Weak, Negative•Weak, Negative•Weak, Negative• Very Weak, Negative•Weak, Positive•Weak, Positive

CORRELATION CO-EFFICIENT (CONT’D…)

Variable

GDP per capitaGDP (constant 2005 US$)

GDP (current US$)Exchange RateStocks TradedFDI, net inflows

Numeral

0.180.240.180.160.350.07

Relationship

• Very Weak, Positive•Weak, Positive• Very Weak, Positive• Very Weak, Positive•Weak, Positive• Very Weak, Positive

CORRELATION CO-EFFICIENT (CONT’D…)

Variable

Domestic SavingsCash Surplus / Deficit

Trade Openness

Numeral

0.290.110.32

Relationship

•Weak, Positive• Very Weak, Positive•Weak, Positive

CONCLUSIONAdverse

Uplift of 29 Million people out of Poverty Line in 2003 – 2014

Enlistment in Developed Countries

Deep Recessions Growth Rate deceleration in current decade

GDP contraction in 2015 Economic and Political Crisis Commodity price drops

The government of the country should develop means and policies to attract foreign investors and ensure the safety of

their investment to boost up the economy of the Brazil

Progressive