About Brazil and Key Financial Statistics

About Brazil and Key Financial Statistics

Overview of Economy:

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. 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. 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.

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 reelection 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.

Gross Domestic Product (In USD):

$3.276 trillion (2014 est.)

$3.271 trillion (2013 est.)

$3.184 trillion (2012 est.)

Composition of Gross Domestic Product:

% Agricuture: 5.6

% Industry: 23.4

% Services: 71

Composition of Labor Force by Occupation:

% Agriculture: 15.7

% Industry: 13.3

% Services: 71

Per Capita Income:

$16,200 (2014 est.)

$16,100 (2013 est.)

$15,700 (2012 est.)

Exports:

$224.6 billion (2014 est.)

$241.3 billion (2013 est.)

Key Export Commodities:

transport equipment, iron ore, soybeans, footwear, coffee, automobiles

Export Partners:

China 18%, US 12.1%, Argentina 6.3%, Netherlands 5.8% (2014)

Imports:

$230.6 billion (2014 est.)

$241.9 billion (2013 est.)

Key Import Commodities:

machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics

Import Partners:

China 16.3%, US 15.4%, Argentina 6.2%, Germany 6%, Nigeria 4.2% (2014)

Inflation Rate (Consumer Price Index):

6.3% (2014 est.)

6.2% (2013 est.)

Exchange Rate to USD:

reals (BRL) per US dollar -

2.3535 (2014 est.)

2.3535 (2013 est.)

1.95 (2012 est.)

1.675 (2011 est.)

1.7592 (2010 est.)

Unemployment Rate:

4.8% (2014 est.)

5.4% (2013 est.)

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings