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flag Brazil Brazil: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Brazil is the sixth largest global economy in terms of GDP, ranking ahead of countries like the United Kingdom, Italy, Canada and Spain. Prudent fiscal and monetary policies, coupled with the necessary microeconomic reforms, have given the Brazilian economy a strong basis, which has enabled it to weather the global economic crisis. The Brazilian economy has returned to robust growth in 2010, driven by the recovery of foreign trade and supported by stimulus policies. With its growth estimated at 7.5% of GDP, it is the fastest growing country in Latin America. In 2011, GDP growth declined slightly to 3.8%, due to the worsening international environment, including the financial fragility in Europe and the further slowing down of Chinese industry, China being one of Brazil's main trading partners.

President Dilma Rousseff, elected in October 2010, is committed to continuing the policy of her predecessor, former President Lula. The Plan for accelerated growth includes, among other measures, an extensive program of credit support and financing of investments and long-term fiscal measures. The government also aims to reduce public debt, which amounts to more than 60% of GDP.

Despite the good economic performance, there are still significant social problems. The country remains one of the most unequal in the world. There are large regional differences and crime and criminal violence are on the rise. The unemployment rate stands at around 7% and informal work is important. Inflation too remains high, estimated at 6.6% for the year 2011.

Brazil, which will host the FIFA World Cup in 2014 and the 2016 Olympic Games, should invest heavily in infrastructure. This should help stimulate economic growth in the coming years, creating favorable conditions for employment and attracting foreign capital.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 1,600.842,090.312,517.93e2,616.992,788.95
GDP (Constant Prices, Annual % Change) -0.67.5e3.8e3.64.2
GDP per Capita (USD) 8,36010,81612,91713,31614,083
General Government Balance (in % of GDP) -2.4-3.7e-2.9-2.7-2.5
General Government Gross Debt (in % of GDP) 68.166.865.064.062.5
Inflation Rate (%) 4.95.0e6.65.24.2
Unemployment Rate (% of the Labor Force) 8.16.76.77.57.0
Current Account (billions USD) -24.30-47.37e-58.41-66.58-81.99
Current Account (in % of GDP) -1.5-2.3-2.3-2.9-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Brazil has abundant natural resources and its economy is relatively diversified.

A major agricultural power, Brazil is the world's first producer of coffee, sugar cane and oranges, as well as one of the largest producers of soy. It also attracts many world groups in the food industry and biofuels. Brazil has the world's largest commercial livestock herd. Nevertheless, agriculture's contribution to the GDP is relatively small, accounting for only 6.6%, yet the sector represents 40% of its exports. Forests cover half of the country, with the largest ombrophilous forest in the world situated in the Amazon Basin. Brazil is the world’s fourth largest exporter of timber.

Brazil is also a great industrial country. It benefits from its mineral ore wealth and is the second world exporter of iron and one of the main producers of aluminum and coal. As an oil producer, the Brazil is aiming to become self-sufficient in the near future. The country is asserting itself more and more in the textile, aeronautics, pharmacy, automobile, steel and chemical industry sectors. Most of the large automobile manufacturers have set up their production plants in the country. The industrial sector contributes more than quarter of the GDP.

The tertiary sector represents two-thirds of the GDP. In the recent years, the country has embarked on the production of high added-value services, especially in the fields of aeronautics and telecommunications.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 17.0 22.1 60.7
Value Added (in % of GDP) 6.0 26.0 68.0
Value Added (Annual % Change) 8.0 11.8 5.5

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Brazilian Real (BRL) - Average Annual Exchange Rate For 1 USD 2.181.951.832.001.76

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Brazil on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
56.3/100
Position:
Mostly unfree
World Rank:
108/179
Regional Rank:
18/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Although foreign trade only represents a quarter of its GDP, Brazil is amongst the 20 top world exporters and has enormous economic potential. The country's main trade partners are China, the United States, the countries of the Mercosur (Common South American market which encompasses Argentina, Brazil, Paraguay and Uruguay) and the EU. Brazil’s trade deficit is a surplus.

In 2011, the country recorded a trade surplus of around 30 billion USD, an increase of almost 50% over 2010. Exports of goods increased by 26.8% to USD 256 billion while imports rose 25.7% to 226 billion USD. This is Brazil's largest trade surplus since 2007. In the recent years, the country has benefited from strong global demand for soybeans and iron ore, which are among its leading exports. In addition, the Brazilian government has implemented tax incentives to promote exports.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 95,838126,645182,377133,673191,468
Exports of Goods (million USD) 137,808160,649197,942152,995201,915
Imports of Services (million USD) 27,14934,70044,39644,07459,640
Exports of Services (million USD) 17,94622,61528,82226,24530,292
Imports of Goods and Services (Annual % Change) 18.419.915.4-11.526.7
Exports of Goods and Services (Annual % Change) 5.06.20.5-10.28.6
Imports of Goods and Services (in % of GDP) 11.511.813.511.211.2
Exports of Goods and Services (in % of GDP) 14.413.413.711.110.2
Trade Balance (million USD) 46,45840,03224,83625,29020,221
Trade Balance (Including Service) (million USD) 36,80426,8138,1466,044-10,586
Foreign Trade (in % of GDP) 25.825.227.122.321.4

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
China 15.2%
United States 9.6%
Argentina 9.2%
Netherlands 5.1%
Germany 4.0%
See More Countries 56.8%
Main Suppliers
(% of Imports)
2010
United States 15.0%
China 14.1%
Argentina 7.9%
Germany 6.9%
South Korea 4.6%
See More Countries 51.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Iron ores and concentrates, incl. roasted iron...Iron ores and concentrates, incl. roasted iron pyrites 14.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 8.1%
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form 6.3%
Soya beans, whether or not brokenSoya beans, whether or not broken 5.5%
Meat and edible offal of fowls of the species...Meat and edible offal of fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls, fresh, chilled or frozen 2.9%
See More Products 62.9%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.6%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.7%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.9%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 2.2%
See More Products 78.5%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Agriculture and Reserves (MA)
Ministry of Foreign Relations (MRE)
Institute for Mine development (INDI)
Ministry of Development, Industry and Foreign Trade
Ministry of the Economy (Fazenda)
Statistical Office
Brazilian statistics institute
Central Bank
Central Bank
Stock Exchange
Rio de Janeiro Stock Exchange
São Paulo Stock Exchange
Search Engines
Yahoo! Brazil
Aonde
Achei
Lycos Brazil
Bing
RadarUOL
Altavista
Terra
Economic Portals
Economic Portal-Brazil

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Political Outline

Executive Power
The president is both Head of State and Head of the Government; he holds executive power. He (and the vice-president) is elected by universal suffrage for a four year term. He appoints the Council of Ministers.
Legislative Power
The legislative power is bicameral. The parliament, called National Congress, is made up of two houses: the Senate (upper house), which has 81 members (3 members for each of the 26 provinces and for the federal district, elected according to the majority principle, for an 8 year term) ; and the Chamber of Deputies (lower house), which has 513 seats (and whose members are elected by proportional representation for a four year term). Each of the 26 States, and the federal district of Brazilia, has a separate legislature and administration. Brazilians enjoy considerable political rights.
Main Political Parties
Fifteen political parties are represented in the National Congress. As it frequently happens that a politician changes parties, the proportion of seats of a given party in Congress changes regularly. The main political parties are as follows:
- The PT (Workers' Party, center-left)
- The Democrats
- The PMDB(Brazilian Democratic Movement Party, center)
- The PSDB (Brazilian Social Democratic Party, center-left)
- The PCdoB ( Brazilian Communist Party, left-wing)
Current Political Leaders
President: Dilma ROUSSEFF (since 1 January 2011) – PT
Vice President: Michel Temer (since 1 January 2011) - PT
Next Election Dates
Presidential: October 2014
Legislative: October 2014
Senate : October 2014 (for 1/3 of the members)
 

Indicator of Freedom of the Press

World Rank:
58/178
Evolution:
13 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
2/7
Civil Liberties:
2/7

Map of freedom 2010

 

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Last Updates: January 2012