Supply shocks drive GDP fluctuations in developing countries, impacting economic stability.
The main sources of economic ups and downs in developing countries like Brazil and Korea are mostly due to changes in the supply of goods and services. Demand for products plays a big role in Brazil's short-term economic changes, but not so much in Korea. External factors have a small impact on the economy, while the value of money is mostly influenced by government spending. Changes in prices have little effect on the economy and the value of money.