Terms economy in the world ranking right after China

Terms of trade (TOT) is a term that represents the prices of the exports of a country, relative to the prices of its imports. The calculation of TOT is (export/import)*100. A country is spending their capital when the TOT is lesser than 100% and is accumulating more money from export when the TOT is greater than 100%. Gross domestic product (GDP) is the broad measurement of a country’s overall economic activity within a specific time period, usually on an annual basis but some countries such as USA calculate their GDP in quarterly basis. GDP included all private and public consumption, government outlays, investments, private inventories, paid-in construction costs and the foreign balance of trade (export-import).The rapid economic growth of Japan after the World War 2 had been referred as the post-war economic miracle. This rapid growth happened because of the government-industry cooperation, mastery of high technology, and the strong work ethic of Japanese. In 1990s, Japan economic growth slowed down to 1.5% which is slower than the other major developed economies due to the sudden end of the economic bubble created by Bank of Japan when the Tokyo Stock Exchange crashed in 1990 to 1992 and real estate prices peaked in 1991. The slow economic growth lasted for 20 years and is called The Lost 20 Years. Despite this, GDP per capital growth is still able to overstep Europe and United State at 2001 to 2010. Japan turn into the fourth-largest economy in the world ranking right after China with the measurement on purchasing power parity basis that adjusts for price differences during the year 2016. It is also ranked as the third-largest economy in the world by nominal GDP and the world’s second largest developed economy. Brazil currently the largest economy in the Latin America and the second largest in America. It is also the ninth largest economy in the world by nominal GDP and eighth largest measured by purchasing power parity. Brazil had an average annual GDP growth rate of over 5% during the year 2002 to 2012 and was one of the fastest economic growth country in the world. In 2014, its economy enter the recession because of the political crisis which related to the case of impeachment of President Dilma Rouseff. Thence, Brazil’s GDP fell by 3.9% in the year 2015 and keep falling by 3.6% in the year 2016. The unemployment rate of Brazil reached 12%, with 12.3 million people unemployment at the end of year 2016. Furthermore, Brazil’s budget deficit keep on increasing had bring it to the fiscal crisis as they are facing the largest primary budget gap according to Bloomberg.