With Sao Paulo as its economic capital, Brazil is the ninth largest economy in
the world by nominal GDP and eight largest by PPP (Purchasing Power Parity).
It is a mixed economy and its growth depends on import substitution.
The currency BRL (Brazilian real) is valued at around 0.258 USD, and the country
is a part of WTO, G-20, Unasul, Mercosur, and other trade organizations.
The nation houses natural resources like iron, gold, timber, uranium, etc.
that are estimated to be worth 21.8 trillion USD.
Basic Economic Facts
With a nominal GDP of USD 2.056 trillion, Brazil
ranks 9th in the world on the basis of nominal GDP.
In the American continent alone, it is the second
largest economy, right behind the United States.
The growth rate registered in 2018 was around 2.4%,
and the per capita was found to be around $9821.
The majority of the nation’s labor force, estimated to be 120 million,
is employed in services, while the rest are in industry and agriculture.
The main industries that affect Brazil’s economic growth include chemicals, textiles,
cement, shoes, iron ore, motor vehicles, steel, aircraft, and other machinery.
The exports amount to $217.7 billion and include iron ore,
footwear, coffee, soybeans, transport equipment, etc.
While China and the European Union are its biggest export partners, Brazil
shares a healthy trade relationship with the U.S., Argentina, and Japan.
Talking about imports amounting to $150.72 billion, the country imports electronics,
automotive parts, chemical products, transport
and electrical equipment, machinery, etc.
Chronological View of Brazil’s Economy
The government in Brazil made important decisions related to fiscal sustainability
during the 1990s along with measures to open and liberalize the economy.
This gave a massive push to the country’s economy and boosted its competitiveness.
The nation became an overall better place for the development
of the private sector, and investments started pouring on.
Brazil was heading up on the ladder of the evolution of competitiveness
in the year 2009, beating Russia for the very first time in history.
It also closed the gap considerably with China and
India, which is a commendable feat in itself.
By 2010 and the following years, Brazil
became the largest economy in Latin America.
Between 2000 and 2012, Brazil experienced an average 5% of yearly GDP
growth rate and joined the list of the major, fastest-growing economies.
In 2012, it even beat the United Kingdom and temporarily took
the 6th place in the list of the world’s largest economies.
However, the economic growth of Brazil slowed down in 2013, and
in the following year, the nation was hit by the recession.
Regarding the highest number of billionaires in a
country, Brazil was ranked 12th by Forbes in 2016.
The country is also a member of other economic clubs
like the Paris Club, the Cairns Group, and the G8+5.
Brazilian economy started recovering from the recession hit, and
in the first quarter of 2017, the country saw a 1% growth in GDP.
The nation came out of recession officially in the
second quarter of the year with 0.3% GDP growth.