The Park Place Economist


In recent history, Brazil’s economy has featured the typical boom and bust cycle. In the “boom” phases of this cycle the nation has been deemed “The Country of the Future.” Unfortunately, Brazil has never been called “The Country of Now” because its booms are inhibited by culprits such as the bust in the cycle, a global downturn, or a lack of sufficient systems and infrastructure to continually support growth.

Brazil is situated in the northern part of South America, and covers 47.3 percent of the continent (United Nations, 2013). It ranks fifth in the world both in terms of area and population with 196,655,014 people (World Bank, 2011). Careful examination of Brazil’s economic data indicates that it is moving towards a service-based economy, an indication that the economy is becoming similar to those of high-income nations. However, high inequality remains a problem as evidenced by its high GINI coefficient.