Introduction

This paper is concerned with the economic consideration of one of the South American countries and analyzes the impact of an economic concern on that particular South American country that has been chosen and identifies the trend of the economic concern with in specified region on the basis of data sets accumulate from the source. The south American countries has major impact on American economy and the economic concern of one of an important country raise our body of knowledge regarding the economic trend in that particular country and its impact on overall economy as well.

South American Country

The economy of South America consists of twelve nations with three territories and comprise of 6% of population in the world. I have choose Brazil among other South American countries as Brazil is the largest South American country and

Brazil is one of the fastest growing economies of the world. It is ranked at fifth spot in the world regarding population and geographical region and fifth largest economy regarding GDP in the world. The economic concern of Brazil is effectively contributes to world economy and interesting trend of economy can be seen. (Abreu, 2005).

Economic Concern

Among four economic concern including GDP, quantities of specific

Goods and services gross Domestic Product (GDP), and unemployment inflation I have selected inflation. Inflation is an important economic concern that will effect the economy in great extend and inflation rate of a country economy is an important indicator for a country growth prospective. Inflation means rise in the general price level of the country and loss the real value of money as fewer commodities will bought with each additional unit of currency.

Inflation directly relate to the economic productivity and has positive and negative both effect on economy as it create economic uncertainty which may discourage saving and investment. High prices of general commodities and hoarding will be its largest disadvantage. In positive sense it may encourage non monetary investment. But the inflation rate needs to be control in order to sustain country economy.

Inflation trend in Brazil

The inflation rate in Brazil is fluctuating over the years. No consistent trend can be seen in the inflation rate ac past year data support this assumption. According to the data displayed by ( IPCA) in 2002 the inflation rate was 12.53% that is quite high rate. Then the decreasing trend of inflation rate can be seen in Brazil economy as 9.3% in 2003, 7.6% in 2004, 5.69% in 2005, and 3.14% in 2006 that is least in this decade. Then the slight increasing trend can be seen in rate of inflation. 4.46% can be seen in 2007 and 5.91 in 2008. The fluctuating trend can be seen in this range in coming years as well. (Inflation Statistical table)