Analyzing Economic Aspects Between Bahrain And Brazil Introduction

In delineation, an economic indicator is a component of economic data, more often than not of macroeconomic magnitude, that is employed by analysts to construe prevailing or impending investment prospect or to evaluate the overall health of an economy. It becomes possible to ascertain the performance of a certain economy with respect to these metrics and also make a comparison between two or more nations. These economic indicators are fundamental statistics that show the direction and course of an economy (Investopedia, 2018). The main purpose of this paper is to conduct an analysis of economic indicators of the economies of Bahrain and Brazil.

Trends of GDP

The gross domestic product (GDP) is one of the fundamental indicators that are employed to make an assessment of the health of a nation’s economy. It signifies the overall dollar valuation of all the goods and services that are manufactured or produced in the course of a specific period of time. More often than not, the GDP is deemed to be the size of the economy (Stengel, 2011).

GDP Growth (annual %)

The chart above illustrates the economic growth rate of Bahrain and Brazil between 1990 and 2015. It delineates the rate at which the nations’ gross domestic product has changed and grown from one year to the other over the past two and a half decades. As can be noted in the chart above, the GDP growth rate of Bahrain over the course of time has been relatively greater compared to that of Brazil. In fact, between 2000 and 2015, it is only in 2010 and 2011 where it is perceptible that Brazil’s GDP growth rate was greater. The inference of this is in the past decade the rate of growth of the market value of all the goods and services that are produced in Bahrain has been considerably greater compared to that of Brazil. It can also be noted that for the past five years, the GDP growth rate of Brazil has been going through a downward trend from 7% to -3.5%. In contrast, the GDP growth rate of Bahrain has been on a relatively upward trend rising from 1.9% in 2011 to 5.4% in 2013.

GDP Current ($)

The graph above the current value of the GDP of both Brazil and Bahrain valued in US$ for the past 16 years between 2000 and 2016. In delineation, Gross domestic product (GDP) at current prices takes into account the GDP at prices of the-prevailing reporting period. In other words, this can simply be defined as the market value of commodities that are manufactured and produced in a country in the course of a year. Gross domestic product (GDP) at current prices is also referred to as nominal GDP. One of the key perceptible aspects that can be noted is that despite the fact that Bahrain has had a relatively greater GDP growth rate than Brazil in the past few years, the value of Brazil, the value of GDP in US dollars for the latter has been more than 15 times the size of Bahrain in the past 6 years.

GDP Constant

Another GDP trend that is analyzed is GDP at constant prices. In delineation this is a measure of the economy that is adjusted for inflation and mirrors the value of all goods and services manufactured and produced by a nation’s...

In this regard, the base-year price for both of these nations is 2010. As illustrated in the chart above, for the past 15 years, the GDP at constant prices of Brazil has been significantly larger as compared to that of Bahrain. In fact, the GDP at constant prices of Brazil has been gradually increasing surpassing that of Bahrain from 15 times to over 20 times its size. The inference of this is that the purchasing power of the Brazilian economy together with growth is significantly greater over time. Furthermore, it implies that the economic output of Brazil has been much higher compared to the output produced in Brazil.
Unemployment

The national unemployment rate is delineated as the proportion of unemployed workers in relation to the total labor force. It is largely acknowledged as a fundamental indicator of the performance of the labor market. Unemployment significantly impacts the economy as a whole for the reason that when workers lack employment, their households end up losing the potential wages they would have earned and the nation in its entirety loses their contribution to the economy with respect to the goods or services that would have been manufactured and produced (Picardo, 2018). Within a decade the unemployment rate of Brazil was slashed by almost half. In the past three years, it can be perceived that the unemployment rate in Brazil has doubled ranging from 6.8% in 2014 to 13.4% in 2017. There is a lack of extensive data on unemployment for Bahrain, However, the data obtained for the nation indicated that between 2007 and 2012, the total unemployment rate of the country in relation to the total labor force deteriorated from just over 5 percent to 1 percent. This is linked to the poor performance of the economy during the financial crisis of 2008 that had an adverse impact on several economies. Subsequently, the rate of employment considerably diminished during this period of time.

Government Spending

Government spending or government expenditure takes into account all of the government consumption, level of investment, together with transfer payments. Increased financial spending is purposed to stimulate the growth of an economy. Nonetheless, it is imperative to note that severe government expenditure can result in serious budget deficits and also amass sovereign debt, which can have a detrimental impact on the economy. One of the perceptible aspects from the illustrations above is that the government spending of both Bahrain and Brazil has gradually increased over the years. It can be deemed the main objective of this has been to facilitate the stimulation of the two economies so as to guarantee a higher GDP growth rate. In accordance to Statista (2018), the government spending level in Brazil in the 2017 fiscal year amount to approximately 38 percent of the GDP. On the other hand, Government Spending in Bahrain reduced to 1.833 BHD billion in 2016 from 1.844 BHD billion in 2015 (Trading Economics, 2018).

Exports and Imports

The significant role of exports and imports within the economy of a nation or region cannot be overstated. It is imperative to note that imports and exports play a pivotal role in making an ascertainment of the trade balance of a nation. On the one hand, the exports…