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.
Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments.
In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008.
Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in 2010, boosted by an export recovery. Brazil's strong growth and high interest rates make it an attractive destination for foreign investors.
Large capital inflows over the past year have contributed to the rapid appreciation of its currency and led the government to raise taxes on some foreign investments. President Dilma ROUSSEFF has pledged to retain the previous administration's commitment to inflation targeting by the Central Bank, a floating exchange rate, and fiscal restraint.
Main agricultural products: coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Oil proved reserves: 13.2 billion bbl (2010)
Main exports products: transport equipment, iron ore, soybeans, footwear, coffee, autos
Main exports partners: China 12.49%, US 10.5%, Argentina 8.4%, Netherlands 5.39%, Germany 4.05% (2009)
Main imports products: machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Main imports partners: US 16.12%, China 12.61%, Argentina 8.77%, Germany 7.65%, Japan 4.3% (2009)
Brazil in numbers
Population: 190.73 million (2010), the 5th most populous country of the world
Labor force: 103 million (2010)
Total area: 8.5 million km² (3.3 million square miles)
Balance of trade: surplus of US$ 20.28 billion (2010)
Industrial production growth rate: 11.5% (2010)
GDP real growth rate of 7.5% (2010) $ 2.024 trillion (2010)
• Largest producer of iron ore
• Largest producer and exporter of coffee, sugar cane and fruit juices
• Largest exporter of soybeans, beef, chicken and leather
• 4th largest computer market of the world
• 3rd largest market for cosmetics
• 4th destination for Foreign Direct Investment (FDI) among emerging markets
• 4th largest mobile phone market
• 4th largest manufacturer of commercial aircraft
• 5th largest population, books and music markets
• 7th largest consumer market
• 8th of market producer of steel and energy.
Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments.
In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008.
Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in 2010, boosted by an export recovery. Brazil's strong growth and high interest rates make it an attractive destination for foreign investors.
Large capital inflows over the past year have contributed to the rapid appreciation of its currency and led the government to raise taxes on some foreign investments. President Dilma ROUSSEFF has pledged to retain the previous administration's commitment to inflation targeting by the Central Bank, a floating exchange rate, and fiscal restraint.
Main agricultural products: coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Oil proved reserves: 13.2 billion bbl (2010)
Main exports products: transport equipment, iron ore, soybeans, footwear, coffee, autos
Main exports partners: China 12.49%, US 10.5%, Argentina 8.4%, Netherlands 5.39%, Germany 4.05% (2009)
Main imports products: machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Main imports partners: US 16.12%, China 12.61%, Argentina 8.77%, Germany 7.65%, Japan 4.3% (2009)
Brazil in numbers
Population: 190.73 million (2010), the 5th most populous country of the world
Labor force: 103 million (2010)
Total area: 8.5 million km² (3.3 million square miles)
Balance of trade: surplus of US$ 20.28 billion (2010)
Industrial production growth rate: 11.5% (2010)
GDP real growth rate of 7.5% (2010) $ 2.024 trillion (2010)
• Largest producer of iron ore
• Largest producer and exporter of coffee, sugar cane and fruit juices
• Largest exporter of soybeans, beef, chicken and leather
• 4th largest computer market of the world
• 3rd largest market for cosmetics
• 4th destination for Foreign Direct Investment (FDI) among emerging markets
• 4th largest mobile phone market
• 4th largest manufacturer of commercial aircraft
• 5th largest population, books and music markets
• 7th largest consumer market
• 8th of market producer of steel and energy.