Economy Overview
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, 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. Since 2008, Brazil became a net external creditor and all three of the major 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. After reaching historic lows of 4.5% in early 2014, the unemployment rate remains low, but is rising. Brazil's traditionally high level of income inequality has declined for each of the last 15 years. GDP growth has slowed since 2011, due to several factors, including: overdependence on exports of raw commodities, low productivity, high operational costs, persistently high inflation, and low levels of investment. Brazil’s fiscal and current account balances have eroded during the past four years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. After winning re-election in October 2014 by a historically narrow margin, President Dilma ROUSSEFF appointed a new economic team led by Finance Minister Joaquim LEVY, who introduced a fiscal austerity package intended to restore the primary account surplus to 1.2% of GDP and preserve the country’s investment-grade sovereign credit rating. Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and technology transfer requirements on foreign businesses, by investing in education through social programs such as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space, nanotechnology, healthcare, and energy.
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
-1.5% (2014 est.)
Labor Force
110.9 million (2014 est.)
Labor Force by Occupation
Agriculture: 15.7%
Industry: 13.3%
Services: 71%
Unemployment Rate
5.4% (2013 est.)
Population Below Poverty Line
21.4%
Household Income or Consumption by Percentage Share
Lowest 10%: 0.8%
Highest 10%: 42.9% (2009 est.)
Distribution of Family Income Gini Index
55.3 (2001)
Budget
Revenues: $861.4 billion
Expenditures: $834.4 billion (2014 est.)
Public Debt
56.7% of GDP (2013 est.)
Central Bank Discount Rate
11% (31 December 2011)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$147.1 billion (31 December 2013 est.)
Stock of Broad Money
$835.3 billion (31 December 2013 est.)
Stock of Domestic Credit
$2.277 trillion (31 December 2013 est.)
Market Value of Publicly Traded Shares
$1.546 trillion (31 December 2010 est.)
Reserves of Foreign Exchange and Gold
$358.8 billion (31 December 2013 est.)
Debt External
$482.8 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
$668.5 billion (31 December 2013 est.)
Stock of Direct Foreign Investment Abroad
$173.6 billion (31 December 2013 est.)
Exchange Rates
1.7592 (2010 est.)
