Brazil s Global Financial Crisis - 1960 Words

Brazil is the largest economy in Latin America and the seventh largest economy in the world with a GDP of US$2.246 trillion as of 2014. It has only been within the last few years that Brazil has begun to reap the benefits of nearly two decades of reform. A strong performance through the Global Financial Crisis (GFC) highlighted the country’s newfound stability as much of the reason for this strong performance can be traced to a series of specific policy decisions that have attacked glaring issues hindering economic growth. Brazil’s implementation of such strategies as the Growth Acceleration Plan, Bolsa Familia and My House, My Life have all encouraged and facilitated the foreign and domestic investment that has propelled Brazil’s†¦show more content†¦Better known as PAC – this program contributed to preventing a greater drop in economic activity and also facilitate the policy response to the crisis. PAC, although primarily an economic growth pol icy had a great impacts on economic development. The introduction of PAC saw the creation of many jobs and as a result the unemployment steadily shrunk from 10.2% in 2007 to 4.7% as of October 2014. Even during the Global Financial crisis unemployment only rose 0.7% , which can be seen in figure 2. Figure 2 In addition, on the one hand, in the period 2007-08 the primary budget was around 4% of GDP and furthermore, Brazil and most other emerging countries benefited from higher commodity prices, basically as a result of a positive external