2 questions. 10 points, + brainliest.
In four to five sentences, describe the economic factors that are contributing to the decline in Brazil's economy.
In three to four sentence explain why Columbia's economy is not growing faster and what the government is planning to do about this.
Answers
a) Business confidence decreased to the lowest level since January , contracting 1.4% in July. Both domestic and external 0.2% in the second quarter but could have been better if not for a disruptive strike.
b) GDP growth Actual: 1.0% year-over-year. Consensus: 1.1% year-over-year. Close enough. But not good enough. GDP rose 0.2% in the second quarter but could have been better if not for a disruptive strike.
Answer 2:-
Colombia meets every criteria of an emerging market economy. Its GDP per capita, at $7,992.80 as of 2015, falls well below the developed country threshold but ranks much higher than most of its peers in the developing world. Its 2014 HDI was 0.711; again, insufficient for a developed country but not far behind.
In 2016 Colombia was ranked 54th in the world for its ease of doing business, slipping back two places from the 2015 ranking of 52nd out of 189. However, despite this small fall, the country’s overall DTF score improved to 70.43 from 69.89.
PLS MARK ME AS BRAINLIEST!!!!!
After decades of rapid economic growth and per capita income gains, Brazil is struggling. According to the International Monetary Fund, the country’s GDP is poised to contract by more than 7% in 2015-2016. No single factor explains this reversal of fortune. Four do.
For starters, there is the structural trend of rising primary government expenditure as a share of GDP, which reached 36% in 2014, up from 22% in 1991. This increase reflected a political desire to address the poverty and inequality that had gone unaddressed during previous decades. To support the increase, Brazil’s government increased taxes on consumption and promoted progress toward labor-market formalization. Nonetheless, public investment, particularly in infrastructure, took a hit. In fact, with the exception of the 2005-2008 period, total investment as a share of GDP has remained below 20% since 1991.
The second factor shaping Brazil’s fortunes is the commodity-price super cycle. The upswing in commodity prices that began in 2004 brought many benefits for Brazil: external surpluses, the accumulation of foreign-exchange reserves, positive wealth effects, and higher investment in natural-resource-related sectors. Add to that exchange-rate appreciation and rising minimum-wage floors – not to mention public-sector disbursements indexed to the latter – and Brazil enjoyed a virtuous domestic cycle featuring positive feedback loops between demand for services and formal employment.
The problem is that Brazil allowed high commodity prices simply to reinforce the underlying growth model, instead of preparing its economy for the inevitable bust. Profitability levels in the manufacturing industry were crushed by exchange-rate appreciation and rising domestic production costs, and levels of production practically stagnated from 2008, before starting to decline in 2014. When world metal prices began to fall in 2011, followed by food prices in 2014, Brazil’s economy lost its growth engines.
To be sure, Brazil’s government did make adjustments to its growth pattern following the global financial shocks of 2008-2009. But it took a shortcut, relying on counter-cyclical fiscal and monetary policies to boost growth. This is the third key factor contributing to Brazil’s current travails.
Colombia’s economic freedom score is 67.3, making its economy the 49th freest in the 2019 Index. Its overall score has decreased by 1.6 points, with worsening tax burden, business freedom, and trade freedom scores overpowering modest improvements in labor freedom and monetary freedom. Colombia is ranked 8th among 32 countries in the Americas region, and its overall score is above the regional and world averages. Deeper institutional reforms are needed to strengthen the rule of law and reduce corruption.
Deeper institutional reforms are needed to strengthen the rule of law and reduce corruption. Fiscal reform and constitutional and judicial reforms will be among the key policy goals in the government’s efforts to promote entrepreneurship. The Duque administration is likely to follow orthodox economic policies, underpinning macroeconomic stability. Its budgetary priorities stress economic reactivation measures and include incentives for minerals and hydrocarbons exploration and for infrastructure projects as well as tax breaks for investments in innovation.
BACKGROUND
Colombia is Latin America’s oldest democracy and third-largest economy. A five-decade guerrilla insurgency led principally by the narco-funded Revolutionary Armed Forces of Colombia (FARC) caused hundreds of thousands of casualties. Iván Duque, a young center-right protégé of former President Alvaro Uribe, won 54 percent of the vote in the 2018 election on campaign promises of tougher peace negotiations with the FARC, economic growth for job creation, better health care, and anticorruption efforts. Unfortunately, the country Duque inherited is once again the world’s largest producer of cocaine. The Colombian economy is heavily dependent on exports of petroleum, coffee, and cut flowers. Colombia is a founding member of the Pacific Alliance and has free-trade agreements with the U.S. and many other nations.