Brazil Overview
|
Country Name |
Brazil |
Government System |
Federative Republic |
Capital |
Brasilia |
Administrative divisions |
26 states and 1 federal district |
Population |
196 million |
Population Growth Rate |
1.06% |
Religion |
Roman Catholic (80%) |
Language |
Portuguese |
Currency |
Real (BRL) |
Fiscal Year |
Calendar Year |
Economy
GDP (2007) |
US$ 2.0 tri |
GDP Real Growth Rate, % - 2007 |
5.1% |
GDP per capita |
US$ 10,1 |
Inflation % (per annum) |
5 % |
Unemployment %, end of period |
8.1% |
Trade Flow |
US$ 280 Billion |
FX Rate (per annum average) |
1.77 (August 2010) |
Interest Rate (% p.a. average) |
10.75 (August 2010) |
|
Executive branch |
Chief of State |
- President Luiz Inácio Lula da Silva
- Vice President Jose Alencar. |
Legislative branch |
Bicameral National Congress |
- Federal Senate: 81 seats; three members from each state and federal district elected according to the principle of majority to serve eight-year terms; one-third elected after a four-year period, two-thirds elected after the next four-year period
- Chamber of Deputies: 513 seats; members are elected by proportional representation to serve four-year terms. |
Judicial branch |
Supreme Federal Tribunal
Higher Tribunal of Justice
Regional Federal Tribunals |
11 ministers are appointed for life by the president and confirmed by the Senate.
Judges are appointed for life but like all federal employees, have a mandatory retirement age of 70 |
|
Economy
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets.
Having weathered 2001-03 financial turmoil, capital inflows are regaining strength and the currency has resumed appreciating. The appreciation has slowed export volume growth, but since 2004, Brazil's growth has yielded increases in employment and real wages. The resilience in the economy stems from commodity-driven current account surpluses, and sound macroeconomic policies that have bolstered international reserves to historically high levels, reduced public debt, and allowed a significant decline in real interest rates.
Since 2003, Brazil has steadily improved macroeconomic stability, building up foreign reserves, reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments, adhering to an inflation target, and committing to fiscal responsibility.
|
Rio de Janeiro, RJ |
A floating exchange rate, an inflation-targeting regime, and a tight fiscal policy are the three pillars of the economic program. From 2003 to 2007, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains coupled with high commodity prices contributed to the surge in exports.
Brazil improved its debt profile in 2006 by shifting its debt burden toward real denominated and domestically held instruments. "LULA" DA SILVA restated his commitment to fiscal responsibility by maintaining the country's primary surplus during the 2006 election.
Following his second inauguration, "LULA" DA SILVA announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. The government's goal of achieving strong growth while reducing the debt burden is likely to create inflationary pressures.
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 Braxil in September 2008. Brazil's currency and its stock market - Bovespa - saw large swings as foreign investors pulled resources out of Brazil. 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 the second quarter, 2009. The Central Bank expects growth of 5% for 2010.
Sources: *CIA World Fact Book and Ministry of Foreign Relations, International Trade and Culture
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