Question

VIVDLY DISCUSS IN A LENGTHY THE MAJOR MACROECONOMIC INDICATORS AND ITS IMPACT ON THE DEVELOPMENT OF BRAZIL ECONOMY.

Answer 1

Major macroeconomic indicators are:

1. GDP : Gross Domestic product is a rate which measures the domestic production growth of the country that is final goods and services produced in that country. It is also called economic growth rate. When GDP increases that means a positive economic growth rate that means country's economy is on boost. Negative growth rate indicates country is facing recession or country's economy is falling. For example, in 2019 growth rate of china's economy is 6.3%, growth rate of india's economy was 5%.
2. Unemployment: Unemployed people is a liability on the country because they will use more resources without contributing to the growth of the economy. They will not pay the taxes to the government for growth. their income would not be counted in GDP of the country. So, high unemployment rate will give negative impact on the economy or vice-versa.
3. Inflation: General rise in the price of commodities is called inflation. High inflation refers to high prices of commodites and low inflation refers to low prices of commodities which can affect the economy directly. Effect of inflation on economy can be negative or positive. Positive can be people will be encouraged to invest more and negative can be if people will notice that inflation rate will be very high in future they might buy more stock of goods which will increase inflation rate.
4. Balance of payments: it refers to the balance of two accounts one is capital account another is current account. Capital account refers to money flow between two countries and current account refers to the flow of goods and services between the countries. Country focuses on current account so that there would be no trade deficit which refers to imports are greater than exports. Because greater the imports would devalue countries currency and it would depreciate the exchange rate in long run.
5. Interest rates: Higher the interest rates would lower the investment rates. Because when loans will be expensive it would discourage the investors to invest and contribute in country's growth. Lower the interest rates higher the investement rates that means cheaper loans would be invested in the economy.
6. Government budget: Annual budgets of the country plays a vital role in economy's growth and development because it involves annual expenditure and annual revenue on which country's growth is dependent. If government revenue is less that means spendings are high which will be a budget deficit. High revenue low expenditure if budget surplus is good for economy and its growth.

Impact of macroindicators on brazil's economy development are:

Brazil is a developing country and its Human development index is 0.761 according to UNDP. its rank is 79 out of 189 countries. Economic development in Brazil is Low unemployment , high women empowerment, sustainable development factors, low inflation and balanced BOP.