Brazil Economy Profile 2009

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. 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 in October of that year, LULA da Silva announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. Brazil's debt achieved investment grade status early in 2008, but the government's attempt to achieve strong growth while reducing the debt burden created inflationary pressures. For most of 2008, the Central Bank embarked on a restrictive monetary policy to stem these pressures. Since the onset of the global financial crisis in September, Brazil's currency and its stock market - Bovespa - have significantly lost value, -41% for Bovespa for the year ending 30 December 2008. Brazil incurred another current account deficit in 2008, as world demand and prices for commodities dropped in the second-half of the year.

GDP (purchasing power parity)

$1.993 trillion (2008 est.)
$1.896 trillion (2007 est.)
$1.794 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.573 trillion (2008 est.)

GDP - real growth rate

5.1% (2008 est.)
5.7% (2007 est.)
4% (2006 est.)

GDP - per capita (PPP)

$10,200 (2008 est.)
$9,800 (2007 est.)
$9,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 6.7%
industry: 28%
services: 65.3% (2008 est.)

Population below poverty line

31% (2005)

Labor force

93.65 million (2008 est.)

Labor force - by occupation

agriculture: 20%
industry: 14%
services: 66% (2003 est.)

Unemployment rate

7.9% (2008 est.)
9.3% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 1.1%
highest 10%: 43% (2007)

Distribution of family income - Gini index

56.7 (2005)
60.7 (1998)

Investment (gross fixed)

19% of GDP (2008 est.)

Budget

revenues: NA
expenditures: NA

Public debt

36.9% of GDP (2008 est.)
52% of GDP (2004 est.)

Inflation rate (consumer prices)

5.7% (2008 est.)
3.6% (2007 est.)

Central bank discount rate

20.48% (31 December 2008)
17.85% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
43.72% (31 December 2007)

Stock of money

$NA (31 December 2008)
$131.1 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$792.8 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$1.377 trillion (31 December 2007)

Industries

textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

Industrial production growth rate

4.3% (2008 est.)

Electricity - production

437.3 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 8.3%
hydro: 82.7%
nuclear: 4.4%
other: 4.6% (2001)

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 - imports

648,800 bbl/day (2005)

Oil - exports

481,100 bbl/day (2005)

Oil - proved reserves

12.35 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

$-28.19 billion (2008 est.)
$1.551 billion (2007 est.)

Agriculture - products

coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef

Exports

$197.9 billion (2008 est.)
$160.6 billion (2007 est.)

Exports - commodities

transport equipment, iron ore, soybeans, footwear, coffee, autos

Exports - partners

US 14.6%, China 11.5%, Argentina 8.6%, Netherlands 4.9%, Germany 4.5% (2008)

Imports

$173.1 billion (2008 est.)
$120.6 billion (2007 est.)

Imports - commodities

machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics

Imports - partners

US 14.9%, China 11.6%, Argentina 7.9%, Germany 7% (2008)

Reserves of foreign exchange and gold

$193.8 billion (31 December 2008 est.)
$180.3 billion (31 December 2007 est.)

Debt - external

$262.9 billion (31 December 2008)
$240.5 billion (31 December 2007)

Stock of direct foreign investment - at home

$294 billion (31 December 2008 est.)
$248.9 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$127.5 billion (31 December 2008 est.)
$107.1 billion (31 December 2007 est.)

Market value of publicly traded shares

$589.4 billion (31 December 2008)
$1.37 trillion (31 December 2007)
$711.1 billion (31 December 2006)

Economic aid - recipient

$191.9 million (2005)

Currency (code)

real (BRL)

Currency (code)

BRL

Exchange rates

reals (BRL) per US dollar - 1.8644 (2008 est.), 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004)

Fiscal year

calendar year