Overview: The economy, with large agrarian, mining, and manufacturing sectors, entered the 1990s with declining real growth, runaway inflation, an unserviceable foreign debt of $122 billion, and a lack of policy direction. In addition, the economy remained highly regulated, inward-looking, and protected by substantial trade and investment barriers. Ownership of major industrial and mining facilities is divided among private interests--including several multinationals--and the government. Most large agricultural holdings are private, with the government channeling financing to this sector. Conflicts between large landholders and landless peasants have produced intermittent violence. The government is seeking an IMF standby loan despite several failed agreements over the past decade. Relations with foreign commercial banks remain strained because of mounting interest arrears on Brazil's long-term debt. The Collor government, which assumed office in March 1990, is embarked on an ambitious reform program that seeks to modernize and reinvigorate the economy by stabilizing prices, deregulating the economy, and opening it to increased foreign competition. A major long-run strength is Brazil's vast natural resources.

GDP: $388 billion, per capita $2,540; real growth rate - 4.6% (1990)

Inflation rate (consumer prices): 1,795% (December 1990)

Unemployment rate: 4.4% (1990)

Budget: revenues $36.5 billion; expenditures $48.2 billion, including capital expenditures of $4.6 billion (1988)

Exports: $31.4 billion (1990); commodities--iron ore, soybean bran, orange juice, footwear, coffee partners--EC 29%, US 23%, Latin America 10%, Japan 7% (1989)

Imports: $20.4 billion (1990); commodities--crude oil, capital goods, chemical products, foodstuffs, coal; partners--US 21%, Middle East and Africa 20%, EC 20%, Latin America 18%, Japan 7% (1989)

External debt: $122 billion (December 1990)

Industrial production: growth rate - 8.9% (1990); accounts for 35% of GDP

Electricity: 55,773,000 kW capacity; 214,116 million kWh produced, 1,400 kWh per capita (1990)

Industries: textiles and other consumer goods, shoes, chemicals, cement, lumber, iron ore, steel, motor vehicles and auto parts, metalworking, capital goods, tin

Agriculture: accounts for 12% of GDP; world's largest producer and exporter of coffee and orange juice concentrate and second-largest exporter of soybeans; other products--rice, corn, sugarcane, cocoa, beef; self-sufficient in food, except for wheat

Illicit drugs: illicit producer of cannabis and coca, mostly for domestic consumption; government has a modest eradication program to control cannabis and coca cultivation

Economic aid: US commitments, including Ex-Im (FY70-89), $2.5 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-88), $9.9 billion; OPEC bilateral aid (1979-89), $284 million; Communist countries (1970-89), $1.3 billion

Currency: cruzeiro (plural--cruzeiros); 1 cruzeiro (Cr$) = 100 centavos

Exchange rates: cruzeiros (Cr$) per US$1--193.189 (January 1991), 68.300 (1990), 2.834 (1989), 0.26238 (1988), 0.03923 (1987), 0.01366 (1986), 0.00620 (1985)

Fiscal year: calendar year

NOTE: The information regarding Brazil on this page is re-published from the 1991 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Brazil Economy 1991 information contained here. All suggestions for corrections of any errors about Brazil Economy 1991 should be addressed to the CIA.