Country Report Brazil

Slower growth, but still a robust economic performance

• In 2012 growth is expected to slow down to around 3.0%-3.5% as exports will decline. However, domestic demand and investments will keep up the economy.

• Despite still high inflation (around 7%) the central bank has surprisingly lowered interest rates in order to shield the economy from the Eurozone crisis and slowdown in global demand. But this comes at a time when the fiscal policy is quite expansionary.

• Solid solvency and excellent international liquidity positions. Stable investment ratings guarantee that Brazil's large external financing requirements can be covered easily.

• In the mid-term more fiscal tightening and reform efforts (tax and pensions systems) are necessary, but rather improbable due to the political circumstances (lack of coalition and party discipline).

Real GDP growth (%)

Source: EIU / IMF

Fiscal balance (% of GDP)

 Source: EIU / IMF

   Download full country report on Brazil

Download full country report on Brazil

 
General Information

Capital: Brasília
Government type: Federal Republic
Currency: Real (BRL)
Population: 198.7 million
Status: Upper middle income country
(GDP/capita: US$12,391 in 2011)
 
Main import sources (2010)

• China: 14.1%
• USA: 12.0%
• Argentina: 7.9%
• Germany: 6.9%

Main export markets (2010)

• China: 15.2%
• Argentina: 9.2%
• Netherlands: 5.1%
• USA: 4.6%

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Date: December 2011