Brazil Economy Written 2011

 

Brazil’s economy is a globally relevant one. It is, by nominal GDP (Gross Domestic Product), the seventh largest in the world by purchasing power parity. The nominal GDP was US $2.09 trillion in 2010, and is estimated to increase by about 5% every year. Its economy is the largest in all of Latin America and the second-largest in the entire Western Hemisphere.

Initiatives towards fiscal sustainability and a liberal, open economy have aided in ensuring that Brazil’s is an ever-growing economy on an upward slope. Its currency is the Brazilian Real.

It is interesting to note that, due to European occupation and colonialisation centuries ago, Brazil was only really allowed the freedom to establish and expand its own economy from the late 19th century. In fact, the largest and most dramatic financial and industrial growth took place between 1875 and 1975.

This means that the economy is a relatively new one, particularly when one considers its strength within the international marketplace.

By 2010, the GDP was split in the following ways over the various main industry sectors:

• Agriculture: 5.5% (the main products comprise coffee, rice, corn, soybeans, sugarcane, cocoa, various citrus fruits and beef)
• Industry: 28.7% (the main industries within the sector include automobiles, petrochemicals, machinery, electronics, cement, textiles, food, mining and tourism)
• Services: 65.8% (e.g. telecommunications, internet, insurance and so on)

The labour force comprises about 1.4 million people and is distributed as follows:

• Agriculture: 20%
• Industry: 14%
• Services: 66%

The most significant industries in this South American hub include (but are not limited to):

• Aircraft and ships
• Steel
• Iron ore
• Armaments
• Textiles
• Petroleum (producing about 70 million cubic metres per annum)
• Various chemicals
• Soybeans
• Mining / minerals (copper, gold, zinc, uranium, bauxite and nickel are just some of these valuable resources)
• Coffee
• Cotton
• Fertilisers
• Telecommunications equipment

Approximately 16% of the Brazilian population lives below the poverty line, while almost 6% are unemployed.

• Tourism
• Electronics
• Transportation equipment
• Footwear
• Cement (producing about 26 million tons every year)

Brazil exports many of its goods; mainly to countries like China, the United States of America, Argentina, the Netherlands and Germany. It also imports a considerable amount of goods from partners in many of the same lands as well as from Japan.

Brazil is a member of a number of different economic organisations, including the likes of Mercusol and WTO.

As part of its economic sustainability, the Brazilian government is involved in various initiatives to reduce the country’s dependence on imported oil. In 2006, Brazil achieved the status of being energy independent, meaning that it could produce enough energy to sustain its own needs. Hydroelectricity is a major focal point for Brazil, which remains one of the world’s leading producers of such power.

Certain economic programmes and tax laws have been put in place to tackle the debt that Brazil has incurred. It is with this in mind that forecasters are confident of the fact that Brazil will only continue to grow and develop in terms of its economy.

Here is the detailed economic analysis, economic indicators, and forecasts for Brazil: http://www.heritage.org



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