Economic Trends/Outlook in Brazil
Brazil is one of the top ten world economic powers. Its cautious taxation and monetary policies, together with the necessary microeconomic reforms, have given the Brazilian economy solid basis allowing it to withstand the global economic crisis. After going through a slight recession in 2009 (-0.2%), the Brazilian economy returned to robust growth in 2010, driven by the resumption of international trade and supported by the government’s stimulus measures. Estimated at 7.5% of the GDP, Brazil enjoys the strongest growth in Latin America.
The new president Dilma Rousseff, elected in October 2010, has made a commitment to pursue the policies of the former president Lula. The growth acceleration plan launched in 2007 includes, among others measures, a vast program of infrastructure construction, support for lending and investment funding, as well as long-term fiscal measures. The government also seeks to reduce the public debt, which amounts to up to 40% of the GDP.
Despite the good economic performance, the country continues to face large social problems. Brazil remais one of the most unequal countries in the world, with strong regional disparities, while crime and criminal violence are also on the rise. The unemployment rate is at around 7% and casual employment is widespread.
|GDP (billions USD)||1,600.84e||2,090.31e||2,421.64e||2,576.24e||2,735.30e|
|GDP (Constant Prices, Annual % Change)||-0.6e||7.5e||4.5e||4.1e||4.1e|
|GDP per Capita (USD)||8,360e||10,816e||12,423e||13,109e||13,812e|
|General Government Balance (in % of GDP)||-2.4e||-3.5e||-2.5e||-2.6e||-2.4e|
|General Government Gross Debt (in % of GDP)||67.9e||66.1e||65.7e||65.0e||63.8e|
|Inflation Rate (%)||4.9e||5.0e||6.3e||4.8e||4.5e|
|Unemployment Rate (% of the Labor Force)||8.1e||6.7e||6.7e||6.7e||6.7e|
|Current Account (billions USD)||-24.33e||-55.65e||-59.88e||-68.53e||-|
|Current Account (in % of GDP)||-1.5e||-2.9e||-2.9e||-3.2e||-|
Source: IMF - World Economic Outlook Database
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. 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 almost two-thirds of the GDP.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||19.3||21.4||59.1|
|Value Added (in % of GDP)||6.1||25.4||68.5|
|Value Added (Annual % Change)||-5.2||-5.9||2.7|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Mostly unfree
- World Rank:
- Regional Rank:
Sources of General Economic Information
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
- Stock Exchange
Rio de Janeiro Stock Exchange
São Paulo Stock Exchange
- Other Useful Resources
- Main Online Newspapers
Folha de São Paulo
Estado de São Paulo
Jornal do Brasil
On-line economic journal
Jornal do Commercio
- Economic Portals
Any Comments About This Content? Report It to Us.
2012 Country Commercial Guide for U.S. Companies doing business in Brazil.
U.S. Commercial Service Poland on 23 Sep 2012 related to Economic Trends/Outlook in Brazil
The cushion stemming from the country’s low export reliance, large foreign reserves and a sizeable domestic market of nearly 200 million consumers helped the Brazilian economy emerge.
Hong Kong Trade Development Council (HKTDC) on 30 Jul 2012 related to Economic Trends/Outlook in Brazil
U.S. Dept. Of Commerce, Brazil, Brazil
Government Trade Promotion, Hong Kong SAR