Brazil

Capital: Brasilia

Local time:
It is %T:%M %A in Recife, Brasilia, Rio, Sao Paulo, Porto Alegre
It is %T:%M %A in Salvador, Fortaleza
It is %T:%M %A in Manaus

Exchange rate on :

GDP growth rate: 4.105% in 2012

FDI inward stock: 400 808 million USD in 2009

Country risk: See the country risk analysis from Brazil provided by Ducroire.

Economic trends

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 branches 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.

International trade

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.