The economy of Brazil is primarily dependent on exports. Major export items include transport equipment, iron ore, soybeans, meat and oils, chemical products, footwear, coffee and automobiles. The maximum share of GDP is derived from the service sector, followed by the industrial sector, with the least contribution of GDP from the agricultural sector.

 Gross Domestic Product (GDP)

In Q3 2010, GDP at market price of the country is BRL 937.2 billion, an increase of 0.5% compared to Q2 2010.

(Source: Brazilian institute of Geography and Statistics)

GDP Growth Rate

In Q3 2010, GDP of the country grew by 0.5% in relation to Q2 2010.

(Source: Brazilian institute of Geography and Statistics)

Gross National Income

In Q3 2010, Gross National Income of the country reported at BRL 923 billion and in Q3 2009 it was BRL 796.2 billion.

(Source: Brazilian institute of Geography and Statistics)

Gross Savings

In Q3 2010, gross savings of the country was BRL 173.5 billion, an increase of 36.51% over Q3 2009.

(Source: Brazilian institute of Geography and Statistics)

Income tax rate

The individual income tax rates for 2010 in the country vary from 7.5% to 27.5%.

(Source: World wide tax.com)

 Corporate Tax

The corporate tax rate in 2010 was 34%. The tax consists of a basic tax of 15%, a surtax of 10% for annual income of over BRL 240,000 and 9% additional tax for social contribution on net profits.

(Source: World wide tax.com)

Inflation Rate

In 2010, the country registered an inflation rate of 5.91%, an increase of 1.6 percentage points over 2009. The hike in the inflation rate was the effect of an increase in food prices.

(Source: Central Bank of Brazil – Pdf)

 Foreign Direct Investment

The foreign direct investment in 2010 amounted to USD 48,462 million, an increase of 86.75% from 2009.

(Source: Central Bank of Brazil – XL Sheet)

 Banking sector assets

(Source: Central Bank of Brazil – XL Sheet)

Consumer Price Index

The CPI for 2010 recorded at 125.7 points (2006=1000), an increase of 5.01% over 2009.

(Source: Oecd.org)

Interest Rates

p.m – per month            p.y – per year

(Source: Central Bank of Brazil – XL Sheet)

Money Supply (Currency in Circulation)

The four measures of currency supply in Brazil are- M1, M2, M3 and M4.

M1 is the currency outside banks plus demand deposits.

M2 includes time deposits, exchange bills, mortgage bonds, and real estate bonds. 

M3 refers to M1 plus M2 plus foreign currency time deposits, commercial paper and shares of mutual funds or market funds held by residents.

M4 includes M3 plus federal securities and State and local government securities.

(Source: Central Bank of Brazil – XL Sheet)

Total Expenditures

The Government spending in 2010 was BRL 840,807 million, an increase of 20.13% over 2009.

(Source: Central Bank of Brazil – XL Sheet)

Official Exchange Rate

(Source: Central Bank of Brazil – XL Sheet)

Government finances

Sovereign debt dynamics

Fiscal Balance

The fiscal balance registered a surplus of BRL 78,965 million in 2010.

Total Revenue

In 2010, total revenues were BRL 919,772 million, an increase of 24.4% from 2009.

(Source: Central Bank of Brazil – XL Sheet)

Current Surplus/Deficit

In 2010, the country recorded a surplus of BRL 78,966 million.

(Source: Central Bank of Brazil - XL Sheet)

Tax Revenue

In 2010, revenues from taxes amounted to BRL 600,521 million, an increase of 8.81% over 2009.

(Source: Central Bank of Brazil – XL Sheet)

Balance of Payments

(Source: Central Bank of Brazil – XL Sheet)

Labour Force Data

In 2010, the country recorded 23.7 million economically active people of which 22.4 million people were employed.

(Source: Brazilian institute of Geography and Statistics)

Unemployment Rate

The unemployment rate in 2010 has declined and is recorded to be the lowest at 6.7% from 2005.

(Source: Brazilian institute of Geography and Statistics)

Monthly average real income

In 2010, Brazil recorded the highest average monthly income of BRL 1,490.61 million since 2003. The income increased by 3.8%, compared to 2009 and by 19.0%, compared to 2003.

(Source: Brazilian institute of Geography and Statistics)

Brazil is a Federal Republic comprising of 26 States and a federal district. Executive, Legislative and Judiciary are the three main bodies functioning in the country.

Executive

The executive branch consists of Presidency and the Cabinet. The President is the head of State and the head of Government and is elected by the majority of votes for a term of four years.

The Cabinet comprises of Ministries, Secretaries and other agencies and offices.

(Source:brasil.gov.br)

Legislative

The Legislative body is made up of two houses- Senate and Chamber of Deputies, collectively referred to as the National Congress.

There are 81 senators, three for each state and the federal district. Senators are elected through voting for a term of eight years.

The Chamber of Deputies represents the people. The number of Deputies is proportional to the population of each state and is elected for a four year term. Deputies are elected by the proportional voting of each Party.

(Source:brasil.gov.br)

Major political parties active in the country are:

• Workers Party
• Liberal Front Party
• Brazilian Democratic Movement Party
• Brazilian Social Democratic Party
• Progressive Party
• Brazilian Labour Party
• Liberal Party
• Brazilian Socialist Party
• Popular Socialist Party
• Democratic Labour Party
• Communist Party of Brazil

(Source: Tribunal Superior Eletoral)

Regulatory Environment

The Brazilian economy has experienced steady growth as a result of large scale commodity exports.

Burdensome taxes, inefficient regulation, poor access to long-term financing, and a rigid labour market are some of the barriers for doing business in Brazil. The judicial system is vulnerable to political influence and corruption.

(Source: heritage.org)

Business and Economic Freedom

The country scored 56.3 points on the economic freedom index making it the 113^th freest economy in 2011. The country is below the world and regional average. It is ranked 21^st out of 29 countries in Central American and Caribbean region.

(Source: heritage.org)

Corruption Perception

Brazil ranks 69^th on the World’s Corruption Perception Index (CPI). CPI measures the perceived level of public-sector corruption in 180 countries and territories around the world.

(Source: transparency.org)

Freedom of Information

The country’s press media is free from political parties and government involvement. Media is free to debate about the social and political matters.

O Dia, O Correio Brazilense, O Globo, Jornal do Brasil, Folha de Sao Paulo, O Estado de Sao Paulo are the key newspapers in the country while Globo is the Chief broadcaster of T.V and radio networks.

The country ranks 58^th on the World press freedom index 2010 conducted by rsf.org.

(Source: rsf.org, BBC News)

Judicial System

The National Justice Council administers the judiciary system of the country. It looks after the planning and coordination between the courts. The Judicial system of Brazil has the following levels:

• Ordinary courts

o    Trial courts

o    Courts of Justice

o    Federal regional courts

• Specialised courts

o    Military courts

o    Labor courts

o    Electoral courts

• Supreme Federal Court

• Superior Court of Justice

The Supreme Federal Court is the highest court of justice and is responsible for guarding the constitution of Brazil. It consists of eleven judges appointed by the President after the approval of nominations by the Federal Senate.

The Superior Court of Justice is the highest court of justice for non-constitutional issues and also institutes legal proceedings against the Governors of the states and of the Federal District, the judges of the Courts of Justice of the states and of the Federal District.

The Trial Court and the Court of Justice are State level courts. Trial court is a court of first instance and the Court of Justice is a court of second instance. The Court of Justice is the highest court of appeal in a State.

Military courts carry out legal proceedings of military crimes and Brazilian armed forces.

Labour Courts carry out legal proceedings over labour-law issues and the Superior Labour court is the highest court of appeal concerning labour laws.

Electoral Courts overlook the organization, execution of all political elections and their results. Each state has a Regional electoral court. The Superior Electoral court controls the system of all the Electoral courts.  

(Source: brasil.gov.br)

In 2010, the population of the country was 190.73 million, an increase of 12.3% from 2000.

(Source: Brazilian institute of Geography and Statistics)

The average annual population growth rate declined over the past four decades.

(Source: Brazilian institute of Geography and Statistics)

Representation of gender in the country is almost equal. The total male population of the country for the year 2010 was 93.39 million, while the female population was 97.34 million accounting for about 51% of the total population.

The highest percentage of the male population falls under the 10-14 years age group with 4.58% of the total population. The highest percentage of the female population falls under the 25-29 year age bracket.

Urbanisation

In 2010, the urban population was recorded at 84.35% of the total population with only 15.65% of the population living in rural areas. In 2000, the urban population accounted for 81.25% of the total population.

(Source: Brazilian institute of Geography and Statistics)

Crude Birth Rate

In 2009, the country registered a crude birth rate of 15.8%.

(Source: Brazilian institute of Geography and Statistics)

Infant Mortality Rate

As of 2009, the infant mortality rate was 22.47 deaths per thousand live births.

(Source: Brazilian institute of Geography and Statistics)

Life Expectancy

As of 2009, the life expectancy at birth in the country was 73.17 years. From 1980 to 2009, there has been an increase of 10.60 years in life expectancy at birth.

(Source: Brazilian institute of Geography and Statistics)

Human Development Index
Brazil is ranked 73^rd on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and a basic standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

Poverty

In Brazil, poverty levels have declined from 28.1% in 2003 to 15.3% in 2009.

(Source: Brazilian institute of Geography and Statistics)

Education

The Federal Government overlooks the Education system in Brazil and Ministry of education is responsible for education in the country.

Education in the country is divided into three levels

• Fundamental Education
• Secondary Education
• Higher Education

Pre-School Education is optional and provided by kindergartens and nursery schools before the age of six.
Fundamental education is compulsory for children aged between 6 to 14 years. The core curriculum consists of Portuguese, History, Geography, Science, Mathematics, Arts and Physical Education and one or two foreign languages are also compulsory.

Secondary education is imparted only after the completion of fundamental education. Duration for secondary education is 3 years. The core curriculum includes Portuguese, Foreign language, History, Geography, Mathematics, Physics, Chemistry, Biology, Philosophy and Sociology.

For Higher education, students after completion of their secondary education go through a competitive entrance examination for the specific course of study. The higher education in Brazil is divided under two categories - undergraduate and graduate degree.

Undergraduate bachelor’s degree requires four years of post secondary studies in the fields of arts, humanities, and sciences. Five year degrees are provided for architecture, engineering veterinary medicine and Law. The undergraduate degree in medicine requires six years of full-time post-secondary studies.

Graduation degree is provided after the completion of a two-year program, with the submission of a master’s thesis.

(Source: icbeu.com.br)

Illiteracy Rate

The number of illiterate people aged 15 or older accounted for 14,105,000 in 2009.

40-59 years age bracket is the biggest with 35.4% of the total illiterate people aged 15 or older followed by 65 years and above age bracket with 32.9%.

The country recorded an illiteracy rate of persons 15 years or older as 20.3% in 2009. The illiteracy rate is higher among men and for rural population the illiteracy rate is 40.7%.

(Source: Brazilian institute of Geography and Statistics)

Health care Resources

The health care establishments increased from 77,004 units in 2005 to 94,070 units in 2009.

 (Source: Brazilian institute of Geography and Statistics)

(Source: Brazilian institute of Geography and Statistics)

Mass public transit

The means of mass public transport in the country includes trams, buses, metros and cabs and trains.

Public transport handles over 140 million passengers per year. About 13,400 buses are run by the private and public companies to provide effective road passenger transportation in the country.

(Source: Ministry of Transportation, Brazil)

Roadways: The total length of roads measured at the end of 2008 in the country was 1.8 million Km. 

(Source: Ministry of Transportation, Brazil)

Railways: The total railway lines in Brazil accounts for about 28,000 Km. Maximum rail track in the country is narrow gauged accounting for 23,000 Km.

(Source: The National Association of Railway Transport, Brazil)

Ports

There are about 45 ports in the country. Port of Tubarao, Port of Itaqui, Port of Santos and Port of Sepetiba are some of busiest ports of the country.

(Source: worldportsource)

Airports

There are more than 700 airports in the country. Some of the busiest airports in the country are given below:

(Source: aircraft-charter-world.com)

Internet access

Internet usage in Brazil has increased consistently for four years from 14.1% in 2005 to 34.4% in 2008.

(Source: internetworldstats)