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Currently, Brazil pursues industrial, extractive, and agricultural growth and development of its interior. By exploiting vast natural resources and a large labor pool, it has become South America’s leading economic power and regional leader (Careers.org - Brazil n.d.). Brazil’s economy out produces that of other South American countries and is expanding its presence in world markets (CIA World Factbook - Brazil 2009). In 2007, Brazil’s GDP measured by purchasing power parity was ninth largest in the world (The World Bank 2009). Between 2004 and 2008 Brazil’s economy grew at an average rate of 4.8%-double the rate of growth registered in prior decades. In spite of the world economic crisis, growth of 0.5% is expected in 2009 (The World Bank: Brazil Country Brief 2009). By June 2009, Brazil’s stock market rebounded to pre-global financial crash levels and the central bank cut its lending rate to single digit levels—the first time since the 1960s. Some are expecting that growth in 2010 will return to 4.0% (The Economist Magazine: Jun 11th 2009). Historically high commodity prices have aided the Brazilian economy in recent years. Moreover, with the discovery and tapping of offshore oil reserves by 2007 Brazil became self-sufficient in oil (The Economist Magazine: Mar 19th 2009). Certainly this has helped Brazil, but the real story of Brazil’s success lies in sound macro-economic management. Public sector debt has been reduced to below 40% of GDP, foreign currency borrowing has been converted into Brazilian Real-denominated instruments, Brazil has almost $200 billion of foreign currency reserves, its current account deficit is small, and inflation is under control (The Economist Magazine: Mar 5th 2009). In short, the Brazilian economy is stable and has led to an “uncharacteristic outbreak of long-termism” (The Economist Magazine: Jun 11th 2009).
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