Brazil has faced great obstacles in the past and her strength and willingness to push forward under such circumstances is an indication of her strong willpower. The economic recession that hit the world from the September 11, 2001 attacks of the New York twin towers had ripple effects on other economies around the globe like Brazil (Nanto, 2009). In the years leading to 2008 Brazil experienced economic recession that led to loss of jobs, currency swap with the USA, close of industries, reduced investments and loss of confidence in the Brazilian currency among other impacts (Nanto, 2009) .after the recession, the economy has made significant strides to reshape and stabilize.
The flow of currency is the backbone of every economy, the stability of the economy, on the other hand, is influenced by monetary policies, the banking systems and the available monetary regulation policies ( Grivoyannis, 2017 ). When these principles work in concert, the economy will be stable and investors will invest in leading to the growth in the economy ( Grivoyannis, 2017 ). The Brazilian economy underwent modifications which to buffer its banking systems, monetary regulations, and policies. The policy changes empowered the economy which has since then been on the rise ( Grivoyannis, 2017 ).
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Brazil’s economy is buffered by the availability of natural resources that are rare in other countries ( Kormann, 2015) . This feature makes Brazil a potential supplier of both hard and soft resources in the global market. The favorable economic policies, Availability of resources together with the growing industries, and agriculture form the basis of the strength of Brazilian economy ( Christiansen 2014 ) . It is also important to highlight the role played by liberalization and democracy. The economic debts that crashed Brazil in the 1980s were inherited from authoritarian administrations and after the fall of this rule and establishment of democracy, the economy has been on the rise, therefore, the system of governance is another major strength of Brazil’s economy ( Doctor, (2016) .
Even though Brazil has a great potential to become a leading world economy, its growth is hindered by factors like corruption, social inequality, racial segregation, poor weak education system, environmental pollution and the social economic gap between those who have and those who have not ( Christiansen 2014).
References
Christiansen, B. (Ed.). (2014). Handbook of research on economic growth and technological change in Latin America . New York, NY: IGI Global.
Doctor, M. (2016). Business-State Relations in Brazil: Challenges of the Port Reform Lobby . New York, NY: Taylor & Francis.
Grivoyannis, E. C. (2017). The New Brazilian Economy . Palgrave Macmillan
Kormann, L. (2015). Big business and Brazil’s economic reforms. New York, NY: Routledge,
Nanto, D. K. (2009). The global financial crisis: Analysis and policy implications . Diane Publishing.
