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Brazil Economy Profile 2017

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Economy - overviewBrazil is the eighth-largest economy in the world, but is recovering from a recession in 2015 and 2016 that ranks as the worst in the country’s history. Falling commodity prices reduced export revenues and investment, which weakened the Brazilian Real and cut tax revenues. The weaker real made existing public debt, which was largely denominated in foreign currency, more expensive. Lower tax revenues strained the government budget.

Economic reforms proposed in 2016 aim to slow the growth of government spending and reduce barriers to foreign investment. Government spending growth helped to push public debt to 70% of GDP at the end of 2016 up from 50% in 2012. Policies to strengthen Brazil’s workforce and industrial sector, such as local content requirements, may have boosted employment at the expense of investment.

Former President Dilma ROUSSEFF was impeached and convicted in August 2016 for moving funds among government budgets; the economy has also been affected by multiple corruption scandals involving private companies and government officials. Sanctions against the firms involved—some of the largest in Brazil—has limited their business opportunities, producing a ripple effect on associated businesses and contractors. In addition, investment in these companies has declined because of the scandals.

Brazil is a member of the Common Market of the South (Mercosur), a trade bloc including Argentina, Paraguay, Uruguay, and Venezuela. After the Asian and Russian financial crises, the trade bloc adopted a protectionist stance to guard against exposure to the volatility of foreign markets. Brazil and its Mercosur partners have pledged to open the bloc to more trade and investment, but changes require approval of all five members, which makes policy adjustments to difficult to enact.
GDP (purchasing power parity)$3.081 trillion (2016 est.)
$3.192 trillion (2015 est.)
$3.371 trillion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$1.77 trillion (2016 est.)
GDP - real growth rate-3.5% (2016 est.)
-3.8% (2015 est.)
0.1% (2014 est.)
GDP - per capita (PPP)$14,800 (2016 est.)
$15,400 (2015 est.)
$16,000 (2014 est.)
note: data are in 2016 dollars
Gross national saving17.2% of GDP (2016 est.)
16.4% of GDP (2015 est.)
16.2% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 62.2%
government consumption: 20%
investment in fixed capital: 19.8%
investment in inventories: -0.5%
exports of goods and services: 12.8%
imports of goods and services: -14.3% (2016 est.)
GDP - composition by sectoragriculture: 5.2%
industry: 22.7%
services: 72%
(2016 est.)
Population below poverty line3.7%
note: approximately 4% of the population are below the "extreme" poverty line (2016 est.)
Labor force101.9 million (2016 est.)
Labor force - by occupationagriculture: 10%
industry: 39.8%
services: 50.2%
(2016 est.)
Unemployment rate11.8% (2016 est.)
8.9% (2015 est.)
Unemployment, youth ages 15-24total: 15%
male: 12.3%
female: 18.7% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 1.2%
highest 10%: 41.6% (2014 est.)
Distribution of family income - Gini index49.7 (2014)
55.3 (2001)
Budgetrevenues: $311.9 billion
expenditures: $262.6 billion (2016 est.)
Taxes and other revenues17.6% of GDP (2016 est.)
Budget surplus (+) or deficit (-)2.8% of GDP (2016 est.)
Public debt73.5% of GDP (2016 est.)
66.4% of GDP (2015 est.)
Inflation rate (consumer prices)6.7% (2016 est.)
10.7% (2015 est.)
Central bank discount rate13.75% (31 December 2016 est.)
14.25% (31 December 2015)
Commercial bank prime lending rate47.4% (31 December 2016 est.)
43.96% (31 December 2015 est.)
Stock of narrow money$107 billion (31 December 2016 est.)
$85.64 billion (31 December 2015 est.)
Stock of broad money$928.9 billion (31 December 2014 est.)
$835.3 billion (31 December 2013 est.)
Stock of domestic credit$2.076 trillion (31 December 2016 est.)
$1.644 trillion (31 December 2015 est.)
Market value of publicly traded shares$490.5 billion (31 December 2015 est.)
$843.9 billion (31 December 2014 est.)
$1.02 trillion (31 December 2013 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-8.4% (2016 est.)
Current Account Balance-$23.51 billion (2016 est.)
-$58.88 billion (2015 est.)
Exports$189.7 billion (2016 est.)
$191.1 billion (2015 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$134.2 billion (2016 est.)
$171.4 billion (2015 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$373.3 billion (31 December 2016 est.)
$368.7 billion (31 December 2015 est.)
Debt - external$544.1 billion (31 December 2016 est.)
$542.3 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$753.2 billion (31 December 2016 est.)
$615 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$295 billion (31 December 2016 est.)
$288.5 billion (31 December 2015 est.)
Exchange ratesreals (BRL) per US dollar -
3.39 (2016 est.)
3.3315 (2015 est.)
3.3315 (2014 est.)
2.3535 (2013 est.)
1.95 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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