COMPARISON OF GDP IN BRAZIL AND THE UNITED STATES

5 million square kilometers and has a population of 182 million. It is rich in natural resources, and has a strong manufacturing, agricultural and mining sectors. The nation has the largest of all South American economies, and GDP of $1.34 trillion in 2002, with per capita GDP of $7,600 in 2002 ("Brazil" 1).

Brazil embarked on its most successful economic stabilization program of the 1990s, the Plano Real in July 1994. Inflation, which had reached an annual level of nearly 5000 percent at the end of 1993, dropped to its lowest level in more than 40 years in 1997. Brazil accomplished this through a combination of a strong exchange rate, tight monetary policies, trade liberalization and privatization. In addition, the government introduced a series of constitutional reform proposals to replace the state-dominated economy with a market-oriented one and to restructure all levels of government on a financially sound basis. Subsequent to that, the Brazilian Congress approved amendments to open the economy to greater private sector participation, including foreign investors. Reforms to bring order to government fiscal accounts were less successful because of their greater political sensitivity. The government placed great importance on these fiscal reforms for sustainable longterm growth. Although the Plano Real raised the income of poor Brazilians, Brazil continued to have one of the world's most inequitable distributions of inco

"United States." CIA World Fact Book, 2003. Retrieved from the Internet 2 Dec 2003: http://www.cia.gov/cia/publications/

The American economy goes through cycles of expansion and contraction, and analysts generally agree that the most recent cycle was hampered by unexpected events--the terrorist attacks of September 2001, corporate scandals, and the war in Iraq. Demand never reached the point where companies could justify expanding their production, hiring new workers and adding to inventories. By this reasoning, the downward effects of the cycle lasted longer than some expected (Cooper & Madigan 25).

Aversa, Jeannine. "Economy, Confidence Riding High." The Record (Bergen County, NJ) (Nov 26, 2003): B01.

macroeconomics/ HistoricalRealGDPValues.xls.

 

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