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.
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
4.3% (2008 est.)country comparison to the world: 62
Labor Force
93.65 million (2008 est.)country comparison to the world: 6
Electricity production
438.8 billion kWh (2007 est.)country comparison to the world: 11
Electricity Consumption
404.3 billion kWh (2007 est.)country comparison to the world: 10
Electricity Exports
2.034 billion kWh (2007 est.)
Electricity Imports
42.06 billion kWh; note - supplied by Paraguay (2008 est.)
Unemployment Rate
7.9% (2008 est.)country comparison to the world: 109 9.3% (2007 est.)
Population Below Poverty Line
31% (2005)
Household Income or Consumption by Percentage Share
Lowest 10%: 1.1%
Highest 10%: 43% (2007)
Distribution of Family Income Gini Index
56.7 (2005)country comparison to the world: 10 60.7 (1998)
Budget
Revenues: NA
Expenditures: NA
Public Debt
38.8% of GDP (2008 est.)country comparison to the world: 58 52% of GDP (2004 est.)
Central Bank Discount Rate
20.48% (31 December 2008)country comparison to the world: 9 17.85% (31 December 2007)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$1.249 trillion (31 December 2008)country comparison to the world: 11 $1.377 trillion (31 December 2007)
Market Value of Publicly Traded Shares
$589.4 billion (31 December 2008)country comparison to the world: 12 $1.37 trillion (31 December 2007)$711.1 billion (31 December 2006)
Reserves of Foreign Exchange and Gold
$193.8 billion (31 December 2008 est.)country comparison to the world: 7 $180.3 billion (31 December 2007 est.)
Debt External
$262.9 billion (31 December 2008)country comparison to the world: 27 $240.5 billion (31 December 2007)
Stock of Direct Foreign Investment at Home
$294 billion (31 December 2008 est.)country comparison to the world: 15 $248.9 billion (31 December 2007 est.)
Stock of Direct Foreign Investment Abroad
$127.5 billion (31 December 2008 est.)country comparison to the world: 23 $107.1 billion (31 December 2007 est.)
Exchange Rates
reals (BRL) per US dollar - 1.8644 (2008 est.), 1.85 (2007 est.), 2.1761 (2006), 2.4344 (2005), 2.9251 (2004)
