Brazil Economy - 2021


SOURCE: 2021 CIA WORLD FACTBOOK

GEOGRAPHICAL NAMES  Spanish Simplified Chinese French German Russian Hindi Arabic Portuguese

Economic overview

Brazil is the eighth-largest economy in the world, but is recovering from a recession in 2015 and 2016 that ranks as the worst in the country’s history. In 2017, Brazil`s GDP grew 1%, inflation fell to historic lows of 2.9%, and the Central Bank lowered benchmark interest rates from 13.75% in 2016 to 7%.

The economy has been negatively affected by multiple corruption scandals involving private companies and government officials, including the impeachment and conviction of Former President Dilma ROUSSEFF in August 2016. Sanctions against the firms involved — some of the largest in Brazil — have limited their business opportunities, producing a ripple effect on associated businesses and contractors but creating opportunities for foreign companies to step into what had been a closed market.

The succeeding TEMER administration has implemented a series of fiscal and structural reforms to restore credibility to government finances. Congress approved legislation in December 2016 to cap public spending. Government spending growth had pushed public debt to 73.7% of GDP at the end of 2017, up from over 50% in 2012. The government also boosted infrastructure projects, such as oil and natural gas auctions, in part to raise revenues. Other economic reforms, proposed in 2016, aim to reduce barriers to foreign investment, and to improve labor conditions. Policies to strengthen Brazil’s workforce and industrial sector, such as local content requirements, have boosted employment, but at the expense of investment.

Brazil is a member of the Common Market of the South (Mercosur), a trade bloc that includes Argentina, Paraguay and Uruguay - Venezuela’s membership in the organization was suspended In August 2017. After the Asian and Russian financial crises, Mercosur adopted a protectionist stance to guard against exposure to volatile foreign markets and it currently is negotiating Free Trade Agreements with the European Union and Canada.

Real GDP growth rate

1.13% (2019 est.)

1.2% (2018 est.)

1.62% (2017 est.)

country comparison to the world: 169

Inflation rate (consumer prices)

3.7% (2019 est.)

3.6% (2018 est.)

3.4% (2017 est.)

country comparison to the world: 158

Credit ratings

Fitch rating: BB- (2018)

Moody's rating: Ba2 (2016)

Standard & Poors rating: BB- (2018)

Real GDP (purchasing power parity)

$3,092,216,000,000 (2019 est.)

$3,057,465,000,000 (2018 est.)

$3,017,715,000,000 (2017 est.)

note: data are in 2010 dollars

country comparison to the world: 10

GDP (official exchange rate)

$1,877,942,000,000 (2019 est.)

Real GDP per capita

$14,652 (2019 est.)

$14,596 (2018 est.)

$14,520 (2017 est.)

note: data are in 2010 dollars

country comparison to the world: 115

Gross national saving

12.2% of GDP (2019 est.)

12.4% of GDP (2018 est.)

13.6% of GDP (2017 est.)

country comparison to the world: 162

GDP - composition, by sector of origin

agriculture: 6.6% (2017 est.)

industry: 20.7% (2017 est.)

services: 72.7% (2017 est.)

GDP - composition, by end use

household consumption: 63.4% (2017 est.)

government consumption: 20% (2017 est.)

investment in fixed capital: 15.6% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 12.6% (2017 est.)

imports of goods and services: -11.6% (2017 est.)

Ease of Doing Business Index scores

Overall score: 59.1 (2020)

Starting a Business score: 81.3 (2020)

Trading score: 69.9 (2020)

Enforcement score: 64.1 (2020)

Agricultural products

sugar cane, soybeans, maize, milk, cassava, oranges, poultry, rice, beef, cotton

Industries

textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

Industrial production growth rate

0% (2017 est.)

country comparison to the world: 169

Labor force

86.621 million (2020 est.)

country comparison to the world: 5

Labor force - by occupation

agriculture: 9.4%

industry: 32.1%

services: 58.5% (2017 est.)

Unemployment rate

11.93% (2019 est.)

12.26% (2018 est.)

country comparison to the world: 164

Population below poverty line

4.2% (2016 est.)

note: approximately 4% of the population are below the "extreme" poverty line

Gini Index coefficient - distribution of family income

53.9 (2018 est.)

54 (2004)

country comparison to the world: 7

Household income or consumption by percentage share

lowest 10%: 0.8%

highest 10%: 43.4% (2016 est.)

Budget

revenues: 733.7 billion (2017 est.)

expenditures: 756.3 billion (2017 est.)

Taxes and other revenues

35.7% (of GDP) (2017 est.)

country comparison to the world: 57

Budget surplus (+) or deficit (-)

-1.1% (of GDP) (2017 est.)

country comparison to the world: 82

Public debt

84% of GDP (2017 est.)

78.4% of GDP (2016 est.)

country comparison to the world: 32

Fiscal year

calendar year

Current account balance

-$50.927 billion (2019 est.)

-$41.54 billion (2018 est.)

country comparison to the world: 203

Exports

$291.452 billion (2019 est.)

$298.565 billion (2018 est.)

$286.935 billion (2017 est.)

country comparison to the world: 26

Exports - partners

China 28%, United States 13% (2019)

Exports - commodities

soybeans, crude petroleum, iron, corn, wood pulp products (2019)

Imports

$271.257 billion (2019 est.)

$268.237 billion (2018 est.)

$248.961 billion (2017 est.)

country comparison to the world: 25

Imports - partners

China 21%, United States 18%, Germany 6%, Argentina 6% (2019)

Imports - commodities

refined petroleum, vehicle parts, crude petroleum, integrated circuits, pesticides (2019)

Reserves of foreign exchange and gold

$374 billion (31 December 2017 est.)

$367.5 billion (31 December 2016 est.)

country comparison to the world: 10

Debt - external

$681.336 billion (2019 est.)

$660.693 billion (2018 est.)

country comparison to the world: 20

Exchange rates

reals (BRL) per US dollar -

5.12745 (2020 est.)

4.14915 (2019 est.)

3.862 (2018 est.)

3.3315 (2014 est.)

2.3535 (2013 est.)

NOTE: The information regarding Brazil on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Brazil 2021 information contained here. All suggestions for corrections of any errors about Brazil 2021 should be addressed to the CIA or the source cited on each page.

This page was last modified 16 Dec 23, Copyright © 2023 ITA all rights reserved.