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The Economy of Brazil

Brazilian Economy

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Economy - overview: Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and Brazil is expanding its presence in world markets. From 2003 to 2007, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains coupled with high commodity prices contributed to the surge in exports. Brazil improved its debt profile in 2006 by shifting its debt burden toward real denominated and domestically held instruments. LULA DA SILVA restated his commitment to fiscal responsibility by maintaining the country's primary surplus during the 2006 election. Following his second inauguration in October of that year, LULA DA SILVA announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. Brazil's debt achieved investment grade status early in 2008, but the government's attempt to achieve strong growth while reducing the debt burden created inflationary pressures. For most of 2008, the Central Bank embarked on a restrictive monetary policy to stem these pressures. Since the onset of the global financial crisis in September, Brazil's currency and its stock market - Bovespa - have significantly lost value, -41% for Bovespa for the year ending 30 December 2008. Brazil incurred another current account deficit in 2008, as world demand and prices for commodities dropped in the second-half of the year.

GDP:

GDP - real growth rate: 5.2% (2008 est.) 5.4% (2007 est.) 4% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 5.5% industry: 28.5% services: 66% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 0.9% highest 10%: 44.8% (2004)

Distribution of family income - Gini index: 56.7 (2005)

Inflation rate (consumer prices):

Labor force: 100.9 million (2008 est.)

Labor force - by occupation: agriculture: 20% industry: 14% services: 66% (2003 est.)

Unemployment rate: 8% (2008 est.)

Budget: revenues: NA expenditures: NA

Industries: textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

Industrial production growth rate: 4.4% (2008 est.)

Electricity - production: 437.3 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 402.2 billion kWh (2007 est.)

Electricity - exports: 2.034 billion kWh (2007 est.)

Electricity - imports: 40.47 billion kWh; note - supplied by Paraguay (2007 est.)

Oil - production: 2.277 million bbl/day (2007 est.)

Oil - consumption: 2.372 million bbl/day (2007 est.)

Oil - exports: 481,100 bbl/day (2005)

Oil - imports: 648,800 bbl/day (2005)

Oil - proved reserves: 12.18 billion bbl (1 January 2008 est.)

Natural gas - production: 9.8 billion cu m (2007 est.)

Natural gas - consumption: 19.8 billion cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 10 billion cu m (2007 est.)

Natural gas - proved reserves: 347.7 billion cu m (1 January 2008 est.)

Agriculture - products: coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef

Exports: $200 billion f.o.b. (2008 est.)

Exports - commodities: transport equipment, iron ore, soybeans, footwear, coffee, autos

Exports - partners: US 16.1%, Argentina 9.2%, China 6.8%, Netherlands 5.6%, Germany 4.6% (2007)

Imports: $176 billion f.o.b. (2008 est.)

Imports - commodities: machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics

Imports - partners: US 15.7%, China 10.5%, Argentina 8.6%, Germany 7.2%, Nigeria 4.4% (2007)

Debt - external: $236.6 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: reals (BRL) per US dollar - 1.8644 (2008 est.), 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004)

Fiscal year: