Brazil

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Brazil is one of the top ten world economic powers. The taxation and monetary policies, cautiously run by President Lula, together with the necessary microeconomic reforms (which have been ongoing since his new term of office began in January 2007), have restored confidence in this market, which even though it was affected by the global economic crisis, has solid bases. In the eyes of all international observers, the Brazillian economy is clearly progressing and less and less vulnerable, as its resistance in the face of the global crisis proved. Additionally, the unemployment rate is contantly dropping. However, the government's debt (mainly domestic) is still high, at around 45% of the GDP. Thanks to a trade surplus, the amount of reserves now equals that of the foreign debt at the height of 190 billion dollars. The consumer price index should increase slightly during this year and follow the downward trend again in 2010.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	1,089.30	1,333.50e	1,572.84	1,268.51	1,317.25e
GDP (constant prices, annual % change)	4.0	5.7	5.1e	-1.3e	2.2
GDP per capita (USD)	5,832	7,043e	8,197e	6,526	6,692
Inflation rate (%)	4.2	3.6	5.7e	4.8	4.0e
Unemployment rate (% of the labor force)	-	-	8.0	-	-
Current Account (billions USD)	13.64	1.55	-28.30	-23.11e	-23.78e
Current Account (in % of GDP)	1.3	0.1	-1.8e	-1.8e	-1.8e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

Brazil has abundant natural resources and its economy is relatively diversified.
A major agricultural power, Brazil is one of the leading producers of soya and is the world's first producer of coffee, sugar cane and oranges. It also attracts many world groups in the food industry and biofuels. Brazil has the world's largest commercial livestock herd. Nevertheless, agriculture's contribution to the GDP is relatively small. Forests cover half of the country, with the largest ombrophilous forest in the world situated in the Amazon Basin.
Brazil is also a great industrial country. It benefits from its mineral ore wealth and is the second world exporter of iron and one of the main producers of aluminum. The country is asserting itself more and more in the textile, aeronautics, pharmacy, automobile, steel and chemical industry sectors. Most of the large automobile manufacturers have set up their production plants in the country. The industrial sector contributes to almost a third of the GDP, whereas the tertiary sector represents almost two-thirds of the GDP.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	21.0	21.0	57.9
Value added (in % of GDP)	5.5	28.7	65.8
Value added (annual % change)	5.3	4.9	5.6

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Brazilian Real (BRL) - Average annual exchange rate for 1 USD	2.93	2.43	2.18	1.95	1.83

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 56.7/100
Position:: mostly unfree
World Rank:: 105 out of 179
Regional Rank:: 21 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Brazil is amongst the 20 top world exporters. However, the country still has enormous economic potential. The country's main trade partners are the Mercosur (Common South American market which encompasses Argentina, Brazil, Paraguay and Uruguay - website in Spanish or Portugese), the United States and China. In 2008, Brazil recorded a trade deficit for the first time since 2002, due to the sharp appreciation of the Real against the dollar, which made foreign products cheaper. It is forecasted that the trade balance will not stabilize until 2010.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	48,290	62,809	73,606	91,350	120,621
Exports of goods (millions USD)	73,084	96,475	118,308	137,807	160,649
Imports of services (millions USD)	15,378	17,260	24,356	29,116	37,250
Exports of services (millions USD)	10,447	12,584	16,047	19,462	23,895
Imports of goods and services (annual % change)	-1.6	13.3	8.5	18.3	20.7
Exports of goods and services (annual % change)	10.4	15.3	9.3	4.7	6.6
Imports of goods and services (in % of GDP)	12.1	12.5	11.5	11.7	12.3
Exports of goods and services (in % of GDP)	15.0	16.4	15.1	14.6	13.9
Trade Balance (millions USD)	24,794	33,666	44,703	46,458	40,028
Trade Balance (including service) (millions USD)	19,863	28,990	36,394	36,804	26,673
Foreign trade (in % of GDP)	27.1	29.0	26.6	26.3	26.2

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	14.0%
Argentina	8.9%
China	8.3%
Netherlands	5.3%
Germany	4.5%
Japan	3.1%
Venezuela	2.6%
Chile	2.4%
Italy	2.4%
Russia	2.4%
Belgium	2.2%
Mexico	2.2%
France	2.1%
Spain	2.1%
United Kingdom	1.9%
Saint Lucia	1.8%
South Korea	1.6%
Saudi Arabia	1.3%
Paraguay	1.3%
Peru	1.2%
See more countries	59.0%

Main suppliers (% of imports)	2008
United States	14.9%
China	11.6%
Argentina	7.7%
Germany	6.9%
Japan	3.9%
Nigeria	3.9%
South Korea	3.1%
France	2.7%
Italy	2.7%
Chile	2.4%
India	2.1%
Russia	1.9%
Canada	1.9%
Mexico	1.8%
Saudi Arabia	1.7%
Bolivia	1.7%
United Kingdom	1.5%
Algeria	1.4%
Spain	1.4%
Switzerland	1.3%
See more countries	55.0%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Ores, slag and ashOres, slag and ash	9.5%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	9.4%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	7.4%
Iron and steelIron and steel	6.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	6.4%
Meat and edible meat offalMeat and edible meat offal	6.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	5.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	3.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	3.0%
Sugars and sugar confectionerySugars and sugar confectionery	2.9%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	2.4%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	2.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	2.0%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.5%
Organic chemicalsOrganic chemicals	1.4%
Aluminium and articles thereofAluminium and articles thereof	1.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.4%
Plastics and articles thereofPlastics and articles thereof	1.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	1.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.3%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	1.1%
Articles of iron or steelArticles of iron or steel	1.1%
Rubber and articles thereofRubber and articles thereof	1.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	1.0%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.0%
CerealsCereals	1.0%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.0%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.9%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.8%
Ships, boats and floating structuresShips, boats and floating structures	0.8%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.5%
Pharmaceutical productsPharmaceutical products	0.5%
CottonCotton	0.5%
Miscellaneous chemical productsMiscellaneous chemical products	0.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Ceramic productsCeramic products	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
FertilizersFertilizers	0.2%
Live animalsLive animals	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.2%
Nickel and articles thereofNickel and articles thereof	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Glass and glasswareGlass and glassware	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.1%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.1%
See more products	60.8%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	19.8%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	14.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	11.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	7.4%
FertilizersFertilizers	5.4%
Organic chemicalsOrganic chemicals	4.9%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.5%
Plastics and articles thereofPlastics and articles thereof	3.3%
Pharmaceutical productsPharmaceutical products	2.5%
Rubber and articles thereofRubber and articles thereof	1.9%
Iron and steelIron and steel	1.9%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.7%
Articles of iron or steelArticles of iron or steel	1.6%
Miscellaneous chemical productsMiscellaneous chemical products	1.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.5%
Copper and articles thereofCopper and articles thereof	1.4%
CerealsCereals	1.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.9%
Ores, slag and ashOres, slag and ash	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Man-made filamentsMan-made filaments	0.6%
Aluminium and articles thereofAluminium and articles thereof	0.6%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.4%
Man-made staple fibresMan-made staple fibres	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.3%
Glass and glasswareGlass and glassware	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
CottonCotton	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.1%
Ceramic productsCeramic products	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.1%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.1%
Lead and articles thereofLead and articles thereof	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
See more products	41.1%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Agriculture and Reserves (MA)
Ministry of Foreign Relations (MRE)
Institute for Mine development (INDI)
Ministry of Development, Industry and Foreign Trade
Ministry of the Economy (Fazenda)
Statistical Office: Brazilian statistics institute
Central Bank: Central Bank
Stock Exchange: Rio de Janeiro Stock Exchange
São Paulo Stock Exchange
Search Engines: Yahoo! Brazil
Aonde
Achei
Lycos Brazil
MSN Search Brazil
RadarUOL
Altavista
Terra
Economic portals: Economic Portal-Brazil

Political outline

Executive Power: The president is both Head of State and Head of the Government; he holds executive power. He (and the vice-president) is elected by universal suffrage for a four year term. He appoints the Council of Ministers.
Legislative Power: The legislative power is bicameral. The parliament, called National Congress, is made up of two houses: the Senate (upper house), which has 81 members (3 members for each of the 26 provinces and for the federal district, elected according to the majority principle, for an 8 year term) ; and the Chamber of Deputies (lower house), which has 513 seats (and whose members are elected by proportional representation for a four year term). Each of the 26 States, and the federal district of Brazilia, has a separate legislature and administration. Brazilians enjoy considerable political rights.
Main political parties: Fifteen political parties are represented in the National Congress. As it frequently happens that a politician changes parties, the proportion of seats of a given party in Congress changes regularly. The main political parties are as follows:
- The PT (Workers' Party, center-left)
- The PFL (Liberal Front Party, right-wing)
- The PMDB(Brazilian Democratic Movement Party, center)
- The PSDB (Brazilian Social Democratic Party, center-left)
- The PCdoB ( Brazilian Communist Party, left-wing)
Current political leaders: President : Luiz Inacio LULA DA SILVA (since 1 January 2003) – PT, leading a coalition government
Vice President : Jose ALENCAR (since 1 January 2003) - PT
Next election dates: Presidential and legislative elections: October 2010
Senate : October 2010 (for 1/3 of the members)

Indicator of freedom of the press

World Rank:: 82/173
Evolution:: 2 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 2/7
Civil liberties:: 2/7

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