Question

How Brazil Economy on the world economy and their own economies?

How Russia Economy on the world economy and their own economies?

Answer 1

Brazil Economy.

Brazil follows a mixed economy. It earns 5.8% income from agriculture, 23.8% from industry and 70.4% from services. Since all the Latin American economies are experiencing a downturn, Brazil is also going through the same experience. China’s explosive growth had fuelled Brazil’s growth to as it was a leading exporter to China between 2003-11. It also attracted large capital flows in the same period. With China’s slow growth, Brazil’s economy also experience a downward trend. It is unlikely that Brazil economy will experience the same growth as it experienced during the boom period.

With respect to the world, Brazil accounts for 2.57% of the world GDP. Its GDP per capita income is $9896. It has experienced a growth of 1% in 2017. Brazilian economy is one of the largest economies of Latin American region. It is the ninth largest economy in the world by nominal GDP.

Russia Economy

Russia follows a mixed economy. Important industries such as defence, energy, etc are owned by the state. Prior to 1991, Russian economy was under the government’s control. It was a slow transition to the mixed economy. Russia owns the world’s largest gas reserve. Its main source of income is from selling of gas reserves and arms and ammunitions. Europe is the largest oil and natural gas consumer of Russia. The forceful annexation of Crimea pulled it down towards recession as countries imposed trade barriers. Also lower price of oil and falling of Rubble currency worsened the situation.

With respect to the world, Russia is 11^th largest economy in the world. Its GDP per capita income is $10968. It used to account among the world top ten GDPs. However the other BRICS companions of Russia have overtaken it. It has experienced a GDP growth of 1.5% in 2017.