Economy - overviewCharacterized 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)$1.838 trillion (2007 est.) GDP (official exchange rate)$1.269 trillion (2007 est.) GDP - real growth rate4.5% (2007 est.) GDP - per capita (PPP)$9,700 (2007 est.) GDP - composition by sectoragriculture: 5.1% Population below poverty line31% (2005) Household income or consumption by percentage sharelowest 10%: 0.9% Inflation rate (consumer prices)4.1% (2007 est.) Investment (gross fixed)17.9% of GDP (2007 est.) Labor force99.47 million (2007 est.) Labor force - by occupationagriculture: 20% Unemployment rate9.8% (2007 est.) Distribution of family income - Gini index56.7 (2005) Budgetrevenues: $244 billion Public debt43.9% of GDP (2007 est.) Industriestextiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment Industrial production growth rate4.5% (2007 est.) Electricity - production396.4 billion kWh (2005) Electricity - consumption368.5 billion kWh (2005) Electricity - exports160 million kWh (2005) Electricity - imports39.2 billion kWh; note - supplied by Paraguay (2005) Oil - production1.59 million bbl/day (2006 est.) Oil - consumption2.1 million bbl/day (2006 est.) Oil - imports674,500 bbl/day (2004) Oil - exports278,400 bbl/day (2005) Oil - proved reserves11.24 billion bbl (1 January 2006 est.) Natural gas - production9.37 billion cu m (2005 est.) Natural gas - consumption17.85 billion cu m (2005 est.) Natural gas - exports0 cu m (2005 est.) Natural gas - imports8.478 billion cu m (2005) Natural gas - proved reserves312.7 billion cu m (1 January 2006 est.) Current Account Balance$10.2 billion (2007 est.) Agriculture - productscoffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef Exports$159.2 billion f.o.b. (2007 est.) Exports - commoditiestransport equipment, iron ore, soybeans, footwear, coffee, autos Exports - partnersUS 17.8%, Argentina 8.5%, China 6.1%, Netherlands 4.2%, Germany 4.1% (2006) Imports$115.6 billion f.o.b. (2007 est.) Imports - commoditiesmachinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics Imports - partnersUS 16.2%, Argentina 8.8%, China 8.7%, Germany 7.1%, Nigeria 4.3%, Japan 4.2% (2006) Reserves of foreign exchange and gold$178 billion (24 December 2007) Debt - external$230.3 billion (30 June 2007) Stock of direct foreign investment - at home$214.3 billion (2006 est.) Stock of direct foreign investment - abroad$99.99 billion (2006 est.) Market value of publicly traded shares$711.1 billion (2006) Economic aid - recipient$191.9 million (2005) Currency (code)real (BRL) Exchange ratesreals per US dollar - 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004), 3.0771 (2003) Fiscal yearcalendar year |
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Source: CIA World Factbook | |