Brazil Economy:
Possessing large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets. From 2001-03 real wages fell and Brazil's economy grew, on average, only 2.2% per year, as the country absorbed a series of domestic and international economic shocks. That Brazil absorbed these shocks without financial collapse is a tribute to the resiliency of the Brazilian economy and the economic program put in place by former President CARDOSO and strengthened by President LULA DA SILVA. In 2004, Brazil enjoyed more robust growth that yielded increases in employment and real wages. The three pillars of the economic program are a floating exchange rate, an inflation-targeting regime, and tight fiscal policy, all reinforced by a series of IMF programs. The currency depreciated sharply in 2001 and 2002, which contributed to a dramatic current account adjustment: in 2003 and 2004, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains - particularly in agriculture - also contributed to the surge in exports, and Brazil in 2004 surpassed the previous year's record export level and again posted a current account surplus. While economic management has been good, there remain important economic vulnerabilities. The most significant are debt-related: the government's largely domestic debt increased steadily from 1994 to 2003 - straining government finances - before falling as a percentage of GDP in 2004, while Brazil's foreign debt (a mix of private and public debt) is large in relation to Brazil's small (but growing) export base. Another challenge is maintaining economic growth over a period of time to generate employment and make the government debt burden more manageable.
GDP (purchasing power parity):
$1.49 trillion (2004 est.)
GDP — real growth rate:
5.1% (2004 est.)
GDP — per capita:
purchasing power parity: $8,100 (2004 est.)
GDP — composition by sector:
agriculture: 10.1%
industry: 38.6%
services: 51.3%
(2004)
Labor force:
89 million (2004 est.)
Labor force — by occupation:
agriculture: 20%, industry: 14%, services: 66% (2003 est.)
Unemployment rate:
11.5% (2004 est.)
Population below poverty line:
22% (1998 est.)
Household income or consumption by percentage share:
lowest 10%: 0.7%
highest 10%: 48% (1998)
Distribution of family income — Gini index:
60.7 (1998 est.)
Inflation rate (consumer prices):
7.6% (2004 est.)
Investment (gross fixex):
19.8% of GDP (2004 est.)
Budget:
revenues: $140.6 billion
expenditures: $172.4 billion including capital expenditures of NA (2004 est.)
Public debt:
52% of GDP (2004 est.)
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:
6% (2004 est.)
Electricity — production:
339 billion kWh (2002 est.)
Electricity — consumption:
351.9 billion kWh (2002 est.)
Electricity — exports:
7 kWh (2002 est.)
Electricity — imports:
36.58 billion kWh (2002 est.)
note: Supplied by Paraguay
Oil — production:
1.79 bbl/day (2004 est.)
Oil — consumption:
2.2 million bbl/day (2001 est.)
Oil — exports:
NA
Oil — imports:
NA
Oil — proved reserves:
13.9 billion bbl (2004 est.)
Natural gas — production:
5.95 billion cu m (2001 est.)
Natural gas — consumption:
9.59 billion cu m (2001 est.)
Natural gas — export:
0 cu m (2001 est.)
Natural gas — import:
3.64 billion cu m (2001 est.)
Natural gas — proved reserves:
221.7 billion cu m (2004 est.)
current_account_balance:
$8 billion (2004 est.)
Exports:
$95 billion (f.o.b. 2004 est.)
Exports — commodities:
transport equipment, iron ore, soybeans, footwear, coffee, autos
Exports — partners:
US 20.8%, Argentina 7.5%, Netherlands 6.1%, China 5.6%, Germany 4.1%, Mexico 4% (2004)
Imports:
$61 billion (f.o.b. 2004 est.)
Imports — commodities:
machinery, electrical and transport equipment, chemical products, oil
Imports — partners:
US 18.3%, Argentina 8.9%, Germany 8.1%, China 5.9%, Nigeria 5.6%, Japan 4.6% (2004)
Reserves of foreign exchange and gold:
$52.94 billion (2004 est.)
Debt — external:
$219.8 billion (2004 est.)
Economic aid — recipient:
$30 billion (2002 est.)
Currency:
real (BRL)
Exchange rates:
real per US$: 2.93 (2004 est.), 3.08 (2003 est.), 2.92 (2002 est.), 2.36 (2001 est.), 1.83 (2000 est.)
Fiscal year:
calendar year
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