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. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth to 2.7% in 2011, and 1.5% in 2012. Despite slower growth, in 2011 Brazil overtook the United Kingdom as the world's seventh largest economy in terms of GDP. Unemployment is at historic lows and Brazil's traditionally high level of income inequality has declined for each of the last 14 years. Brazil's historically high interest rates have made it an attractive destination for foreign investors. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchanges markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has retained the previous administration's commitment to inflation targeting by the central bank, a floating exchange rate, and fiscal restraint. In an effort to boost growth, in 2012 the administration implemented a series of more expansionary monetary and fiscal policies that have failed to stimulate much growth.
Agriculture Products
coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Industrial Production Growth Rate
-0.3% (2012 est.)country comparison to the world: 149
Labor Force
107.1 million (2012 est.)country comparison to the world: 6
Unemployment Rate
6.2% (2012 est.)country comparison to the world: 63 6% (2011 est.)
Population Below Poverty Line
21.4% (2009 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 0.8%
Highest 10%: 42.9% (2009 est.)
Distribution of Family Income Gini Index
51.9 (2012)country comparison to the world: 16 60.7 (1998)
Budget
Revenues: $911.4 billion
Expenditures: $846.6 billion (2012 est.)
Public Debt
54.9% of GDP (2012 est.)country comparison to the world: 54 54.2% of GDP (2011 est.)
Central Bank Discount Rate
7.25% (31 December 2012 est.)country comparison to the world: 20 11% (31 December 2011 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$158.3 billion (31 December 2012 est.)country comparison to the world: 23 $152.1 billion (31 December 2011 est.)
Stock of Broad Money
$1.878 trillion (30 November 2011 est.)country comparison to the world: 11 $1.826 trillion (31 December 2010 est.)
Stock of Domestic Credit
$2.537 trillion (31 December 2012 est.)country comparison to the world: 11 $2.247 trillion (31 December 2011 est.)
Market Value of Publicly Traded Shares
$1.229 trillion (31 December 2011)country comparison to the world: 10 $1.546 trillion (31 December 2010) $1.167 trillion (31 December 2009)
Reserves of Foreign Exchange and Gold
$371.1 billion (31 December 2012 est.)country comparison to the world: 6 $352 billion (31 December 2011)
Debt External
$405.3 billion (31 December 2012 est.)country comparison to the world: 27 $382.5 billion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
$595.9 billion (31 December 2012 est.)country comparison to the world: 14 $539.2 billion (31 December 2011 est.)
Stock of Direct Foreign Investment Abroad
$176.7 billion (31 December 2012 est.)country comparison to the world: 24 $171.7 billion (31 December 2011 est.)
Exchange Rates
reals (BRL) per US dollar -2.1 (2012 est.) 1.675 (2011 est.) 1.7592 (2010 est.) 2 (2009) 1.8644 (2008)
