The Economy of Brazil

Key Indicators

  2006 2007 2008 2009 2010
GDP $1.37T $1.64T $1.57T $2.02T $2.19T
Unemployment Rate 9.29% 7.90% 8.10% 7.20% 7.50%
Population 187.64M 189.61M 191.48M 193.25M 194.93M

Featured Economic Indicators [ View all 1100 Economic Indicators ]

Gross Domestic Product (Percent change) Gross Domestic Product (U.S. dollars)
Per Capita Gross Domestic Product  (U.S. dollars) GDP (Purchasing Power Parity) (Current international dollar)
Investment (Percent of GDP) Gross national savings (Percent of GDP)
Inflation average consumer prices (Index) Inflation average consumer prices (Percent change)
Inflation (Index) Inflation (Percent change)
Unemployment rate (Percent of total labor force) Labor Force (Persons)
Population (Persons) Government revenue (National currency)
Government revenue (Percent of GDP) Government expenditure (Percent of GDP)
Government net lending/borrowing (Percent of GDP) Government structural balance (Percent of potential GDP)
Government primary net lending/borrowing (Percent of GDP) Government net debt (Percent of GDP)
Government gross debt (Percent of GDP) Current account balance (U.S. dollars)
Current account balance (Percent of GDP)  

Economic Overview of Brazil

Brazil Map
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazils economy outweighs that of all other South American countries and is expanding its presence in world markets. From 2001-03 real wages fell and Brazils 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. Since 2004, Brazil has enjoyed continued 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, initially reinforced by a series of IMF programs. The currency depreciated sharply in 2001 and 2002, which contributed to a dramatic current account adjustment; from 2003 to 2006, 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. While economic management has been good, there remain important economic vulnerabilities. The most significant are debt-related: the governments largely domestic debt increased steadily from 1994 to 2003 - straining government finances - before falling as a percentage of GDP beginning in 2003. Brazil improved its debt profile in 2006 by shifting its debt burden toward real denominated and domestically held instruments. LULA DA SILVA restated his commitment to fiscal responsibility by maintaining the countrys primary surplus during the 2006 election. Following his second inauguration, LULA DA SILVA announced a package of further economic reforms to reduce taxes and increase public investment. A major challenge will be to maintain sufficient growth to generate employment and reduce the government debt burden.

Nation History

Brazil Map
Following three centuries under the rule of Portugal, Brazil became an independent nation in 1822 and a republic in 1889. By far the largest and most populous country in South America, Brazil overcame more than half a century of military intervention in the governance of the country when in 1985 the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial and agricultural growth and development of its interior. Exploiting vast natural resources and a large labor pool, it is today South Americas leading economic power and a regional leader. Highly unequal income distribution remains a pressing problem.

Source(s): CIA World Factbook