Economic Comparison between Brazil and Argentina (Economic Development Term Paper

Economic Comparison between brazil nut and Argentina (Economic Development And Growth) - Term Paper ExampleIntroduction Population and frugal size Brazil became independent on September 7, 1822. It c everyplaces 8,511,965 sq. km with a creation size of 203.4 million1. Its population growth rate is 1.02 percent per annum. Brazil is the leading economic bolide and regional leader in South America. It is the eight world largest economy in the world. However, the estate is bedeviled by high unequal income distribution and crime. Brazil continues to affiance industrial and agricultural growth and development strategy. The country has a well developed service, manufacturing, agriculture and mining sectors. The Brazilian economy see solid economic performance even in the face of global financial crisis. The economy recovered early as compared to other countries. It was during Lulas reign when the country experienced high economic growth and improved social programs that improved lives of millions of Brazilian citizens. house servant consumption is the key driver of the countrys economic growth. However, the country experiences rising unemployment rates. Sound fiscal management, inflation control and floating exchange rate provided strong impetus for Brazilian economy to grow and develop over the years. The currency of Brazil is Brazilian reais. On the other hand, Argentina became independent on July 9, 1816. Its area coverage is 2.8 million sq. km with a population of 41,769, 7262. Its population growth rate is 1.017 percent annually. Argentinas economy has experienced both good and bad times3. The country has suffered hyperinflation, currency depreciation, domestic help debt default worth $85 one thousand thousand, World Banks loan default and frozen banking system among others. This is because of poor governance by government officials. Between 1975 and 1990, Argentina salaried interest on foreign debt. Furthermore, during the same period, the country expe rienced capital flights and tax evasion. In 2002, unemployment was 25 percent. The government also started repaying defaulted bonds worth $100 billion in an attempt to end shame from 2003. The Argentinas economy grew at the rate of 9 percent annually from 2003 to 2007 following expansionary policies adopted by the government. The growth was negatively affected by global credit crunch between 2007 and 2009, which reduced growth rate to 0.8 percent. However, the economy rebounded and 8.5 percent growth in GDP was experienced in 2010. The Argentine currency is Argentina pesos. In fact, Brazilian geographical area, population, and economy is larger than that of Argentina. Argentinas economy is little stable and volatile as compared to that of Brazil due to many past economic hardships. In 2008-2010 global financial turmoil, Argentina experienced diminished domestic growth as well as reduced domestic and global demand, which caused a mild recession in 2009. In 2008, many more pack in A rgentina are poorer than those in Brazil. In 2008, the population below poverty line in Brazil was 26 percent while in that location are 30 percent in Argentina. Section one outlines each countrys natural resource deposits section two indicates Gross Domestic Product section three indicates unemployment rates section four shows the budget section five shows the inflation and section six shows foreign direct investment. In addition, section seven indicates international trade section eight outlines exchange rate regime section