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.
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.)
Labor Force
99.23 million (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.)
Unemployment Rate
9.3% (2007 est.)
Population Below Poverty Line
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)
Budget
Revenues: $244 billion
Expenditures: $219.9 billion (FY07)
Public Debt
45.1% of GDP (2007 est.)
Central Bank Discount Rate
17.85% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$1.377 trillion (31 December 2007)
Market Value of Publicly Traded Shares
$711.1 billion (2006)
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.)
Exchange Rates
reals (BRL) per US dollar - 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004), 3.0771 (2003)
