Comparing Economic Health Between Australia and Brazil

Question: Discuss about theComparing Economic Health Between Australia and Brazil. Answer: Introduction Understanding economic health of a given country is essential to investors and even the governments policymakers. The changes in GDP and shifts in economy for specific period remain the best elements to economic health understanding (Lima and Resende 2014). The economic indicators including balance of payments, employment, population and linkage between indicators of economic health are used in this paper to analyse and compare Brazilian and Australian economies with respect to economic health. Together with relevant international, regional as well as in-country events and impacts on the each countrys economy, these indictors help present a detailed report comparing the above mentioned economies. Analysis and Comparison of Economic Health of Australia and Brazil GDP Changes and Shifts in Economy through the Period 2010-15 Australia, a vivacious free-market democracy, has showcased inspiring economic progress without experiencing a single recession for nearly twenty-five years. Apart from Australias copious natural resources, Australian economy has gained from long-lasting entrepreneurial development enhanced by effective government system, well-functioning legal system, as well as self-governing bureaucracy. The Gross Domestic Product of Australia is 1.56 trillion USD and the GDP per capita is 67,458.36 USD. Brazil has enormous natural resources along with hefty pool of labour. It is currently the leading economic power and a regional front-runner in South America, one of the early economies in the region to commence recovery of economy. Recently, Brazil has had slower rate of economic growth as compared to Australia (Jayme 2013). The GDP per capita of Brazil was 8,539 in 2015 and the GDP in USD was 1.774.7. Balance of Payments The economy of Australia has showed a persistent enormous current account deficits for over fifty years. The BOP of Australia is undermined by tapered base for exports. The Australian BOP as reflected in the current account deficits, dropped $4,585m (twenty-nine percent) to $11,358m (Jayme 2013). On the other hand, by 2015, the Brazilian Balance of Payment was a deficit of 54,733,947,484 USD. The table below indicates the changes in the Balance of Payment in Brazil between 2010 and 2015. Date Value Change % 2015 -54,733,947,484 -45.59 % 2014 -100,598,529,768 38.90 % 2013 -72,422,724,171 -2.03 % 2012 -73,926,999,991 -6.39 % 2011 -78,977,306,647 4.06 % 2010 -75,899,570,498 222.65 % Population and Employment Brazil has a population of 202,656,788 and it is the fifth largest nation globally by population. It is also the fifth largest country globally by area with 8,414,877 square kilometres. The rates of employment in Brazil rose to 54.1% in November from 53.9% in October of 2016 (Jayme 2013). The employment rate in Brazil averaged 56.29% from 2012 to 2016, striking an all-time high of 57.3% in November 2013 and a record low-slung of 53.9% in October 2016. The number of people employed in Brazil is 90.21 million. Australia has a population of 24 million. The Australians are having more babies, however, the growth in population is majorly due to new immigrant influx. The population of Australia has risen in the last fifteen years from 2000 by 2.75 million people saves to immigrants. The number of people employed in Australia is 11,985,900 having increased by 13,500 people (Nelson 2015). The full-time employment surged 9,300 to 8,176, 500 while part-time employment rose by 4,200 to 3,809, 500. Influence of Global, Regional and In- Country Events The Brazil dropped into a deep-seated recession in 2015 and fugures continuously indicated undesirable evidence that there was a dimming light at the end of economic tunnel. The Brazilian Stock market dropped 20% and economy contracted 1.9% while investment declined 12% (Dedrick et al. 2011). The unemployment surged 7.6% making Standard Poor to downgrade economy of Brazil to junk status as the currency knocked its lowest-ever value of 4.07 reals a dollar. References Dedrick, J., Kraemer, K.L., Palacios, J.J., Tigre, P.B. and Botelho, A.J.J., 2011. Economic liberalization and the computer industry: comparing outcomes in Brazil and Mexico. World Development, 29(7), pp.1199-1214. Jayme, F.G., 2013. Balance-of-payments-constrained economic growth in Brazil. Brazilian Journal of Political Economy, 23(1), pp.62-84. Lima, M.A. and Resende, M., 2014. Convergence of per capita GDP in Brazil: an empirical note. Applied Economics Letters, 14(5), pp.333-335. Nelson, R.R. ed., 2015. National innovation systems: a comparative analysis. Oxford university press.