Comparative analysis of economic growth and development of Brazil and Russian Federation. Period 2000-2010
Информация - Экономика
Другие материалы по предмету Экономика
interest in 2002 when they were declared as members of BRIC countries, who have chance to become worlds leaders in the future or at least play more visible role in world order.in economic development indicators are most visible in population movement. When Brazil experiences high population growth Russian Federation grew at negative rate, which can in longer turn mean obstacle to growth. Income inequality is higher in Brazil, but is becoming lower, when in Russia the opposite is true. Brazil ranked 58 and Russia 63 with concern to global competitiveness index 2010-11. Brazil is doing much better fighting inflation than Russia, but Brazil experiences lower GDP growth rates. Russia has actually no public debt, with just 5,9 % GDP debt (due to oil revenues), Brazilian public debt is 60,8 % and they managed to lower it 2,3 percentage points in ten years.GDP per capita (PPP, constant prices) more than doubled in ten years (2000 to 2010), Brazilian increased almost by one third. Brazil experienced on average 3,14 % economic growth (1997-2010), Russia 4,42%. Both countries were hit by economic financial crisis 2009, but their economies were prepared. Brazilian growth in 2009 was - 0,644 % and year later already 4,03 %. Russian economy was hit harder, because they are more open than Brazil and due to drop in oil demand, what caused - 7,8 % growth in 2009, but she was back on track next year with 4 % growth.value added by economic activity is very similar between observed countries; this is due to similar economical development. The most important value added activity is for both: mining, manufacturing and utilities. 49 % of total industrial value added in Russia is dedicated to fuel, what shows on resource based growth. Supply side economic growth analysis has shown, that 50,3 % of whole economic growth in Brazil is dedicated to growth in capital (62,5 % in Russia), only 0,6 % to growth in labour (0,1 % in Russia) and 49,1 % to technology growth (38 % in Russia). The most important part of GDP in both countries is household consumption (61,5 % Brazil and 44,5 % Russia). Government spending, gross investments and import share are similar, but major difference is made in export. Russians export share in GDP is 32,5 %, when Brazilians is just 14,32 %. Between middle income countries Russia is unusually open and connected to other world, but they are still not WTO members. During the crisis the decline in output in both countries is due to fall of gross investment ( - 41 % RUS and - 10,2 % BRA).Brazilian export more than doubled and Russian export more than tripled from 2000 till 2009. Russian export is mostly based on petroleum and gas. Brazilian export is more diversified, but major changes happened in 2009 when revenues from primary goods export overtook manufactured goods export earnings. Especially export of iron ore (17 % of total export) increased. Brazilian number one trading partner is China. In the future observed countries can become more similar, with taking into concern oil foundlings in Brazil.
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