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Brazil

Brazil Economy Stats

Author: Edsel.G

Author: Edsel.G

Brazil is the seventh largest economy in the world and is currently the largest in Latin America. With vast natural resources and a strong and stable labor force, the upward trend of the Brazilian economy is set to continue in the foreseeable future. In fact, the World Bank has predicted based on existing data that the country will, in less than a decade or so, become the 5th largest economy in the world. It has recently achieved a milestone by surpassing the economic output of Russia, and closing in to Asian giants China and Japan.

Brazil is self-sufficient in petroleum, making it less vulnerable to highly unstable oil-dependent global market. It is also the world’s largest producer of hydroelectric power attributed mainly to its many huge river systems which run all throughout the country. It operates a civilian nuclear reactor, and is in the process of building more plants to produce 20% of the overall energy requirements of the country by the next decade.

The industrial sector of Brazil is highly sophisticated. Embraer, a Brazilian aircraft company, is considered as a competitor to Boeing and Airbus for aircraft sales globally (currently, the American and European manufacturers, respectively, are the two main aircraft manufacturers).

Brazil is set to host two huge events, the World Cup in 2014, and the Olympics in 2016. The said events will ultimately haul in millions of dollars from tourists and will elevate the status of Brazil as a true global economic power.

Overview:

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, 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. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 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. Consumer and investor confidence revived and GDP growth returned to positive in 2010, boosted by an export recovery. Brazil's strong growth and high interest rates make it an attractive destination for foreign investors. Large capital inflows over the past year have contributed to the rapid appreciation of its currency and led the government to raise taxes on some foreign investments. President Dilma ROUSSEFF has pledged to retain the previous administration's commitment to inflation targeting by the Central Bank, a floating exchange rate, and fiscal restraint.

Definitions

  • Debt > External: Total public and private debt owed to non-residents repayable in foreign currency, goods, or services.
  • Debt > External per capita: Total public and private debt owed to non-residents repayable in foreign currency, goods, or services. Figures expressed per capita for the same year.
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Agriculture: The gross domestic product (GDP) or value of all final goods produced by the agricultural sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Composition by sector > Services: The gross domestic product (GDP) or value of all final services produced within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Official exchange rate: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at offical exchange rates (OER) is the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year. The measure is simple to compute and gives a precise measure of the value of output. Many economists prefer this measure when gauging the economic power an economy maintains vis-a-vis its neighbors, judging that an exchange rate captures the purchasing power a nation enjoys in the international marketplace. Official exchange rates, however, can be artifically fixed and/or subject to manipulation - resulting in claims of the country having an under- or over-valued currency - and are not necessarily the equivalent of a market-determined exchange rate. Moreover, even if the official exchange rate is market-determined, market exchange rates are frequently established by a relatively small set of goods and services (the ones the country trades) and may not capture the value of the larger set of goods the country produces. Furthermore, OER-converted GDP is not well suited to comparing domestic GDP over time, since appreciation/depreciation from one year to the next will make the OER GDP value rise/fall regardless of whether home-currency-denominated GDP changed.
  • GDP > Purchasing power parity: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • GINI index: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Human Development Index: The human development index values in this table were calculated using a consistent methodology and consistent data series. They are not strictly comparable with those in earlier Human Development Reports.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Tourist arrivals: International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases data are from tourism accommodation establishments. For some countries number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus a person who makes several trips to a country during a given period is counted each time as a new arrival."
STAT AMOUNT DATE RANK HISTORY
Debt > External $438.9 billion 2012 25th out of 172
Debt > External per capita $1,207.39 2007 69th out of 130
GDP $2.25 trillion 2012 8th out of 177
GDP > Composition by sector > Agriculture 5.4% 2012 124th out of 218
GDP > Composition by sector > Industry 27.4% 2012 99th out of 217
GDP > Composition by sector > Services 67.2% 2012 59th out of 179
GDP > Official exchange rate $2.22 trillion 2012 7th out of 191
GDP > Purchasing power parity $2.33 trillion 2012 7th out of 190
GDP per capita $11,339.52 2012 56th out of 177
GINI index 56.99 2004 1st out of 13
Gross National Income $529 billion 2001 11th out of 158
Human Development Index 0.792 2006 62nd out of 177
Population below poverty line 21.4% 2013 6th out of 8
Public debt 58.8% of GDP 2012 46th out of 149
Tourist arrivals 5.05 million 2008 38th out of 145

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Development Indicators database; Human Development Report 2006, United Nations Development Programme; CIA World Factbooks 18 December 2003 to 28 March 2011; World Tourism Organisation, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.

Citation

"Brazil Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Brazil/Economy

NationMaster

2

Brazil is the seventh largest economy in the world and is currently the largest in Latin America. With vast natural resources and a strong and stable labor force, the upward trend of the Brazilian economy is set to continue in the foreseeable future. In fact, the World Bank has predicted based on existing data that the country will, in less than a decade or so, become the 5th largest economy in the world. It has recently achieved a milestone by surpassing the economic output of Russia, and closing in to Asian giants China and Japan.

Brazil is self-sufficient in petroleum, making it less vulnerable to highly unstable oil-dependent global market. It is also the world’s largest producer of hydroelectric power attributed mainly to its many huge river systems which run all throughout the country. It operates a civilian nuclear reactor, and is in the process of building more plants to produce 20% of the overall energy requirements of the country by the next decade.

The industrial sector of Brazil is highly sophisticated. Embraer, a Brazilian aircraft company, is considered as a competitor to Boeing and Airbus for aircraft sales globally (currently, the American and European manufacturers, respectively, are the two main aircraft manufacturers).

Brazil is set to host two huge events, the World Cup in 2014, and the Olympics in 2016. The said events will ultimately haul in millions of dollars from tourists and will elevate the status of Brazil as a true global economic power.

Posted on 06 Apr 2014

Edsel.G

Edsel.G

245

0

I would like to know the economy U Standard of Living level of the country of Brazil.

Posted on 07 Mar 2010

Margherita

Margherita

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