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Brazil Economy Profile 2016

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Economy - overviewCharacterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, 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. Since 2008, Brazil became a net external creditor and all three of the major ratings agencies awarded investment grade status to its debt.

After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 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. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. GDP growth has slowed since 2011, due to several factors, including overdependence on exports of raw commodities, low productivity, high operational costs, persistently high inflation, and low levels of investment. After reaching historic lows of 4.8% in 2014, the unemployment rate remains low, but is rising. Brazil's traditionally high level of income inequality has declined for the last 15 years.

Brazil’s fiscal and current account balances have eroded during the past four years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. After winning reelection in October 2014 by a historically narrow margin, President Dilma ROUSSEFF appointed a new economic team led by Finance Minister Joaquim LEVY, who introduced a fiscal austerity package intended to restore the primary account surplus (before interest expenditures are included) to 1.2% of GDP and preserve the country's investment-grade sovereign credit rating. LEVY encountered political headwinds and an economy facing more challenges than he anticipated. The target for the primary account surplus fell to a deficit of 2%, and two of the three main credit rating agencies downgraded Brazil to “junk” status.

Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and technology transfer requirements on foreign businesses, by investing in education through social programs such as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space, nanotechnology, healthcare, and energy.
GDP (purchasing power parity)$3.192 trillion (2015 est.)
$3.32 trillion (2014 est.)
$3.317 trillion (2013 est.)
note: data are in 2015 US dollars
GDP (official exchange rate)$1.773 trillion (2015 est.)
GDP - real growth rate-3.8% (2015 est.)
0.1% (2014 est.)
3% (2013 est.)
GDP - per capita (PPP)$15,600 (2015 est.)
$16,400 (2014 est.)
$16,500 (2013 est.)
note: data are in 2015 US dollars
Gross national saving16.4% of GDP (2015 est.)
16.7% of GDP (2014 est.)
18.9% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 63.2%
government consumption: 20.7%
investment in fixed capital: 17.6%
investment in inventories: 0%
exports of goods and services: 13.9%
imports of goods and services: -15.4% (2015 est.)
GDP - composition by sectoragriculture: 5.9%
industry: 22.2%
services: 71.9%
(2015 est.)
Population below poverty line21.4%
note: approximately 4% of the population are below the "extreme" poverty line (2009 est.)
Labor force109.2 million (2015 est.)
Labor force - by occupationagriculture: 15.7%
industry: 13.3%
services: 71%
(2011 est.)
Unemployment rate6.4% (2015 est.)
4.8% (2014 est.)
Unemployment, youth ages 15-24total: 15%
male: 12.3%
female: 18.7% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 0.8%
highest 10%: 42.9% (2009 est.)
Distribution of family income - Gini index51.9 (2012)
55.3 (2001)
Budgetrevenues: $631 billion
expenditures: $641.2 billion (2015 est.)
Taxes and other revenues35.1% of GDP (2015 est.)
Budget surplus (+) or deficit (-)-0.6% of GDP (2015 est.)
Public debt67.3% of GDP (2015 est.)
58.9% of GDP (2014 est.)
Inflation rate (consumer prices)9% (2015 est.)
6.3% (2014 est.)
Central bank discount rate10% (31 December 2013)
11% (31 December 2011)
Commercial bank prime lending rate42.7% (31 December 2015 est.)
32.01% (31 December 2014 est.)
Stock of narrow money$90.94 billion (31 December 2015 est.)
$132.4 billion (31 December 2014 est.)
Stock of broad money$928.9 billion (31 December 2014 est.)
$835.3 billion (31 December 2013 est.)
Stock of domestic credit$1.699 trillion (31 December 2015 est.)
$2.251 trillion (31 December 2014 est.)
Market value of publicly traded shares$1.23 trillion (31 December 2012 est.)
$1.229 trillion (31 December 2011)
$1.546 trillion (31 December 2010 est.)
Agriculture - productscoffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Industriestextiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Industrial production growth rate-5% (2015 est.)
Current Account Balance-$58.91 billion (2015 est.)
-$104.2 billion (2014 est.)
Exports$189.1 billion (2015 est.)
$225.1 billion (2014 est.)
Exports - commoditiestransport equipment, iron ore, soybeans, footwear, coffee, automobiles
Exports - partnersChina 18.6%, US 12.7%, Argentina 6.7%, Netherlands 5.3% (2015)
Imports$174.2 billion (2015 est.)
$229.2 billion (2014 est.)
Imports - commoditiesmachinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics
Imports - partnersChina 17.9%, US 15.6%, Germany 6.1%, Argentina 6% (2015)
Reserves of foreign exchange and gold$359.4 billion (31 December 2015 est.)
$363.6 billion (31 December 2014 est.)
Debt - external$712.5 billion (31 December 2014 est.)
$482.8 billion (31 December 2013 est.)
Stock of direct foreign investment - at home$820.5 billion (31 December 2015 est.)
$755.5 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad$333.1 billion (31 December 2015 est.)
$313.1 billion (31 December 2014 est.)
Exchange ratesreals (BRL) per US dollar -
3.419 (2015 est.)
2.3535 (2014 est.)
2.3535 (2013 est.)
1.95 (2012 est.)
1.675 (2011 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on October 8, 2016

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