Brazil has one of the fastest growing economies in the world with an estimated annual GDP growth rate of five percent. Since the end of the Second World War Brazil has seen its economy transform from exporting mainly agricultural primary products to diversified industrial products and services. Located in South America, Brazil has an estimated population of one hundred and eighty six million people by the year 2007.with more than thirty percent of this population living in urban areas. The economy is also estimated to have one of the highest purchasing powers in the world. This has partly contributed to its steady rapid growth over the years. Based on its GDP the Brazilian economy is the eighth largest in the world .
One of the highest foreign exchange earners in this economy is agriculture. This sector accounts for more than six percent of the country’s GDP. Brazil is the world largest producer of coffee, sugarcane and tropical fruits. The country produces the world largest supply of frozen juices. The country agri-business accounted for more than fifty five billion dollars in the year 2009.The country is also has the world’s largest producer of commercial cattle and beef products as well as poultry and related products with an estimated one hundred heads of cattle. This account for more than fifty percent beef products produced by the USA economy in the world market. The economy is also a large supplier of seafood pork and milk into the world market. Additionally the country’s economy is a world’s major producer of forest products, tobacco, cocoa, corn cotton and soybeans. This therefore makes its agri-business an important industry in the world.
The country’s economy has over the past decades seen rapid expansion of its industrial sector to overtake its traditional agri-business that was the main foreign exchange earner. Due to the country’s high population labor in Brazil is considerably cheaper than most developed countries. This played a major role in attracting industrial investments in the country. The industrial sector in Brazil accounts for an estimated one third of its GDP . Some of its major industrial products include computers, consumer durables, textiles, cement, shoes, automobiles, machineries, and aircrafts as well as automobiles and machinery parts. The country’s has also an abundant supply of natural resources that has transformed the economy into a leading producers of petrochemicals, lumber, tin, iron ore, gemstones , manganese, bauxite, uranium, gemstones, oil, aluminum , nickel and other minerals in the world. Additionally the country’s economy has a well developed services sector that produces first class services. The services that the country offers are such sectors such as energy, banking, computing sectors insurances as well as other financial and commercial services commanding a significant market share in these services in the world market.
Brazil has had one of the highest inflation rates in the world for the past few decades. Its runaway inflation rates started in the early 1950s and spurn out of control completely in the 1980s when the inflation rates would increase monthly by an estimated eighty percent. This trend continued up to the1990s when the government stopped printing money and eventually replaced the old currency in 1994 in bid to control the inflation. This also marked the beginning of its rapid GDP growth rates, a trend that has continued up to date with an estimated annual growth rate of five percent.