Brazil



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Brazil Economy 2008


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 is expanding its presence in world markets. Having weathered 2001-03 financial turmoil, capital inflows are regaining strength and the currency has resumed appreciating. The appreciation has slowed export volume growth, but since 2004, Brazil's growth has yielded increases in employment and real wages. The resilience in the economy stems from commodity-driven current account surpluses, and sound macroeconomic policies that have bolstered international reserves to historically high levels, reduced public debt, and allowed a significant decline in real interest rates. A floating exchange rate, an inflation-targeting regime, and a tight fiscal policy are the three pillars of the economic program. 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, "LULA" DA SILVA announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. The government's goal of achieving strong growth while reducing the debt burden is likely to create inflationary pressures.
GDP (purchasing power parity): $1.849 trillion (2007 est.)
GDP (official exchange rate): $1.314 trillion (2007 est.)
GDP - real growth rate: 5.4% (2007 est.)
GDP - per capita (PPP): $9,500 (2007 est.)
GDP - composition by sector: agriculture: 5.5% industry: 28.7% services: 65.8% (2007 est.)
Labor force: 99.23 million (2007 est.)
Labor force - by occupation: agriculture: 20% industry: 14% services: 66% (2003 est.)
Unemployment rate: 9.3% (2007 est.)
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)
Investment (gross fixed): 17.6% of GDP (2007 est.)
Budget: revenues: $244 billion expenditures: $219.9 billion (FY07)
Public debt: 45.1% of GDP (2007 est.)
Inflation rate (consumer prices): 3.6% (2007 est.)
Central bank discount rate: 17.85% (31 December 2007)
Commercial bank prime lending rate: 43.72% (31 December 2007)
Stock of money: $131.1 billion (31 December 2007)
Stock of quasi money: $792.8 billion (31 December 2007)
Stock of domestic credit: $1.377 trillion (31 December 2007)
Agriculture - products: coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Industries: textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Industrial production growth rate: 4.9% (2007 est.)
Electricity - production: 437.3 billion kWh (2007 est.)
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.)
Current account balance: $1.712 billion (2007 est.)
Exports: $160.6 billion f.o.b. (2007 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: $120.6 billion f.o.b. (2007 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)
Reserves of foreign exchange and gold: $180.3 billion (31 December 2007)
Debt - external: $229.4 billion (31 December 2007)
Stock of direct foreign investment - at home: $248.9 billion (2007 est.)
Stock of direct foreign investment - abroad: $107.1 billion (2007 est.)
Market value of publicly traded shares: $711.1 billion (2006)
Currency (code): real (BRL)
Exchange rates: reals (BRL) per US dollar - 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004), 3.0771 (2003)

NOTE: The economy information regarding Brazil on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Brazil Economy 2008 information contained here. All suggestions for corrections of any errors about Brazil Economy 2008 should be addressed to the CIA.