Army Institute of Business Administration (AIBA)

Army Institute of Business Administration
(AIBA)
Title: Business Life Cycle Analysis of Brazil from

The Fiscal Year 2010-19
Submitted
By
Syed Sultan Mansur ID: 20819006

S.M.Symum ID: 20819009
Avijit Roy ID: 20819003
Submitted To
Dr. Munshi Naser Ibne Afzal
Lecturer,Army institute of business administration (AIBA)

Business cycle
The term “business cycle” refers to the economic fluctuation. A business cycle defined as the
natural fluctuations of economic growth (GDP) that occurs over time. It is the explanation of the
expansion and contraction in economic activity that an economy experiences over time. This
cycle use as a tool for analyzing the economy. It also help to make better financial decisions.
There are six stage in a business cycle[CITATION Cor20 \l 1033 ]. They are:
1. Expansion
Expansion is the first stage of business cycle. This stage is characterized by some indicator such
as growing employment, growth of economic, and upward pressure on prices, income, output,
profits, demand, and supply of goods and services. This process continues until the economic
situations are favorable for expansion.
2. Peak
It is the second stage and the highest point of the business cycle. In this stage highest limit of
enhancement is attained by is producing at highest allowable output above full employment and
inflationary prices.
3. Recession
Recession is occur by following the peak phase. During this stage the demand for commodities
and services reducing rapidly and firmly. All positive economic indicators like income, output,
wages, etc. gradually start to fall.
4. Depression
During this stage the economy doesn’t begin to expand rather the growth of economy continues
to decline and reach below the steady growth line.
5. Trough
In this stage the economy’s growth rate arrive negative and touch their lowest point. There is
comprehensive inanition of national income and expenditure.
6. Recovery
1
During this stage, the economy starts recovering from the negative growth rate. The economy
growing towards a positive attitude like investment, employment and production starts to
increase. This stage continues until the economy touch to steady growth levels. It finishes one
full business cycle.
Business cycle of Brazil (2010 – 2019)
Year GDP
2010 7.528226
2011 3.974425
2012 1.92115
2013 3.004846
2014 0.503956
2015 -3.54576
2016 -3.27592
2017 1.322869
2018 1.317224
2019 ..
Country N Country C Series NamSeries Cod 2010 2011 2012 2013 2014 2015 20
Brazil BRA GDP growthN Y.GDP.MK7.528226 3.974425 1.92115 3.004846 0.503956 -3.54576 -3.275
gdp GROWTH OF BRAZIL

10
8
6
GROWTH RATE
4
2
0
2010 2011 2 01 2 2 01 3 2 01 4 2 01 5 2016 2017 2 0 18 2019
-2
-4
-6
YEARS
Figure 1: business cycle of Brazil (2010-2019) (please double click for the excel calculation)
Up to 2010, Brazil's economy was largest in Latin America and the second largest within

the Americas. From 2000 to 2012, Brazil was one among the quickest growing major
economies among the earth, with a mean annual GDP rate of growth of over 7.5%.
Brazil's economic progress decelerated in after 2013 (3% GDP) and therefore the country
entered a recession in 2014 (0.5% GDP). [CITATION Wik20 \l 1033 ]
2
In 2015, the economic growth rate of this country touched the lowest point and enter into
trough stage with -3.55% GDP. This was occur due partly to low commodity prices and and
political paralysis.[CITATION BBC16 \l 1033 ] . Demand for Brazilian export products especially
from China was decreased which is responsible for commodity prices. In the same year the crisis
began, a serious corruption scheme involving top politicians and major companies like the oil
giant Petrobras was uncovered by Operation Car Wash[CITATION Placeholder1 \l 1033 ] . After
2016, the economy of this country started to recover. This recovery stage continuing end of
2016 then touched the steady growth line. After 2017, the economy of this country has
entered into expansion stage.
Conclusion:
After doing the analysis according to the business life cycle of Brazil from the fiscal year of
2010-2019 we have concluded that the different stages of business life cycle have clear
reflection on the actual position of the country’s GDP growth. As our main task was to
check the last 10 years GDP growth data of Brazil and find out the similarities of the GDP
growth trends of Brazil following the business life cycle and hence we have found the
reality of the ups and down trend of the actual data of the Brazil with business life cycle
stages successfully.
3
References
Amadeo, K. (2020, march 20). The balance. Retrieved june 24, 2020, from What Is the Business Cycle?:
https://www.thebalance.com/what-is-the-business-cycle-3305912#citation-16
BBC News. (2016). Brazil's economy shrank 3.8% in 2015. Bussiness. Retrieved june 24, 2020, from
https://www.bbc.com/news/business-35715317
Corporate finance institute. (2015). Retrieved june 05, 2020, from Business Cycle: a series of expansion
and contraction in economic activity:
https://corporatefinanceinstitute.com/resources/knowledge/economics/business-cycle/?
fbclid=IwAR2LaqUTLgkD2qzBbFptIPI-2RlyNGNsHSyQ1HRn6xamIHOdDNMpj-6LpVI
Wikipedia. (2016, june 13). 2014 Brazilian economic crisis. Retrieved from
https://en.wikipedia.org/wiki/2014_Brazilian_economic_crisis#cite_note-18
Wikipedia. (2020, june 13). 2014 Brazilian economic crisis. Retrieved from
https://en.wikipedia.org/wiki/2014_Brazilian_economic_crisis#cite_note-18
Wikipedia. (2020, june 23). Economy of Brazil. Retrieved june 2020, 24, from Wikipedia, the free
encyclopedia: https://en.wikipedia.org/wiki/Economy_of_Brazil#cite_note-30

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Army Institute of Business Administration

Title: Business Life Cycle Analysis of Brazil from

Syed Sultan Mansur ID: 20819006

Dr. Munshi Naser Ibne Afzal

Lecturer,Army institute of business administration (AIBA)

Business cycle of Brazil (2010 – 2019)

gdp GROWTH OF BRAZIL

Up to 2010, Brazil's economy was largest in Latin America and the second largest within

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