Brazil & China Economic Analysis

Topics: Monetary policy, Inflation, Central bank Pages: 8 (2087 words) Published: September 24, 2013

Economic and Financial Conditions

Final Deliverable

Mohammed Khan

11/29/2012

BUS 313 Mcclain WF 1030- 1145


Final Deliverable

China and Brazil are two up and coming economies that have recently seen great GDP growth, but it is easy to overlook certain factors that have attributed to this. Because of this, we analyze certain aspects pertaining to the economic and financial conditions of each country. To get a general idea, you can look at levels of inflation, unemployment, and economic growth. You can also analyze any stock market performances and how each country’s currency is relative to other currency (Dollar, Euro, and Yen). Lastly, it would be important to how each company handles its reserves, while also looking at a country’s credit rating.

Inflation, Unemployment, Economic Growth (China)
Before analyzing these three components, we must understand what they are exactly: Inflation rate- measures a broad rise or fall in prices that consumers pay for a standard basket of goods. Unemployment Rate- measures the number of people actively looking for a job as a percentage of the labor force. Annual Growth Rate in GDP- measures the change in the value of the goods and services produced by the country economy during the period of a year.

The inflation rate in China was recorded at 1.70 percent in October of 2012. Inflation Rate in China is reported by the National Bureau of Statistics of China. Historically, from 1994 until 2012, China Inflation Rate averaged 4.2 Percent reaching an all time high of 27.7 Percent in October of 1994 and a record low of -2.2 Percent in March of 1999.

Unemployment Rate in China remained unchanged at 4.10 percent in the third quarter of 2012 from 4.10 percent in the second quarter of 2012. Unemployment Rate in China is reported by the Ministry of Human Resources and Social Security of the PRC. Historically, from 2002 until 2012, China Unemployment Rate averaged 4.2 Percent reaching an all time high of 4.3 Percent in December of 2003 and a record low of 3.9 Percent in September of 2002.

The Gross Domestic Product (GDP) in China expanded 7.40 percent in the first quarter of 2012 over the same quarter of the previous year. GDP Annual Growth Rate in China is reported by the National Bureau of Statistics of China. Historically, from 1989 until 2012, China GDP Annual Growth Rate averaged 9.3 Percent reaching an all time high of 14.2 Percent in December of 1992 and a record low of 3.8 Percent in December of 1990.

Inflation, Unemployment, Economic Growth (Brazil)
The inflation rate in Brazil was recorded at 5.45 percent in October of 2012. Inflation Rate in Brazil is reported by the IBGE. Historically, from 1980 until 2012, Brazil Inflation Rate averaged 415.0 Percent reaching an all time high of 6821.3 Percent in April of 1990 and a record low of 1.7 Percent in December of 1998.

Unemployment Rate in Brazil decreased to 5.30 percent in October of 2012 from 5.40 percent in September of 2012. Unemployment Rate in Brazil is reported by the IBGE. Historically, from 2001 until 2012, Brazil Unemployment Rate averaged 9.1 Percent reaching an all time high of 13.1 Percent in August of 2003 and a record low of 4.7 Percent in December of 2011.

The Gross Domestic Product (GDP) in Brazil expanded 0.40 percent in the second quarter of 2012 over the previous quarter. GDP Growth Rate in Brazil is reported by the IBGE. Historically, from 1996 until 2012, Brazil GDP Growth Rate averaged 0.8 Percent reaching an all time high of 4.5 Percent in September of 1996 and a record low of -4.2 Percent in December of 2008. Brazil is one of the fastest growing emerging economies in the world. With large and growing agricultural, mining, manufacturing and service sectors, Brazil economy ranks highest among all the South American countries and it has also acquired a strong position in global economy.

Stock Market Performance (China)
Stocks in China had a...

Cited: "Brazil GDP Growth Rate." Brazil GDP Growth Rate. N.p., n.d. Web. 30 Nov. 2012. .
"Brazil Inflation Rate." Brazil Inflation Rate. N.p., n.d. Web. 30 Nov. 2012. .
"Brazil Unemployment Rate." Brazil Unemployment Rate. N.p., n.d. Web. 30 Nov. 2012. .
"China GDP Annual Growth Rate." China GDP Annual Growth Rate. N.p., n.d. Web. 30 Nov. 2012. .
"China Inflation Rate." China Inflation Rate. N.p., n.d. Web. 30 Nov. 2012. .
"China Stock Market (SSE Composite)." China Stock Market (SSE Composite). N.p., n.d. Web. 30 Nov. 2012. .
"China to Continue Fiscal, Monetary Policies." - China.org.cn. N.p., n.d. Web. 30 Nov. 2012. .
"China Unemployment Rate." China Unemployment Rate. N.p., n.d. Web. 30 Nov. 2012. .
"Fiscal and Monetary Policy of Brazil." I Have To Think. N.p., n.d. Web. 30 Nov. 2012. .
"International Reserves of Countries Worldwide | Global Finance." International Reserves of Countries Worldwide | Global Finance. N.p., n.d. Web. 30 Nov. 2012. .
"List of Countries by Credit Rating." Wikipedia. Wikimedia Foundation, 29 Nov. 2012. Web. 30 Nov. 2012. .
"S&P Affirms China Ratings on 'Exceptional ' Outlook for Growth." Bloomberg. N.p., n.d. Web. 30 Nov. 2012. .
"S&P Upgrades Brazil’s Credit Rating." Financial Times. N.p., n.d. Web. 30 Nov. 2012. .
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Economics
  • economics Essay
  • Economics Essay
  • Socio Economic ANalysis of Bangladesh Essay
  • Economic Trends in Brazil Essay
  • Analysis of Macroeconomic Indicators of China Essay
  • business economics Essay
  • China Economic Transition Essay

Become a StudyMode Member

Sign Up - It's Free