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Brazil Brazil

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Brazil – Quick View
ECR score63.22 (Mar 2011)
ECR rank41 (Mar 2011)
Economic
GDP, 2010 (till Q3)USD 1,489.79 billion
GNI per capita PPPUSD 10,160
FDI inflow, 2010USD 40,462 million
Inflation, 20105.91%
Central bank assets (Dec. 2010)USD 556,495.67 million
Unemployment rate (Dec. 2010)5.3%
Government surplus, 2010USD 44,720.47 million
Tax revenue, 2010USD 340,094.78 million
Political
Government typeFederal presidential constitutional republic
Economic freedom score, 2011113th
Freedom of information score58th
Corruption perception index69th
Structural
Birth rate, 200915.8%
Population balanceUnder 15 years – 24%
Population balance15-24 years – 18%
Population balance25-59 years – 47%
Population balanceAbove 60 years – 11%
Life expectancy years at birth73.17 years
Infant mortality rate (deaths per '000 live births22.47
Illiteracy rate20.3%
Internet access34%

[Top] Economic Overview

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.

Brazil GDP

(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.

Brazil GDP Growth Rate

(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%.

 

Income Tax rates and taxable bands

Income (BRL)

%

1-17,208

-

17,209 - 25,800

7.5

25,801 - 34,392

15

34,393 - 42,984

22.5

over 42,984

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.

Brazil Inflation Rate

(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

Brazil Banking Sector Assets

 

(Source: Central Bank of BrazilXL Sheet)

[Top] Financial Indicators & Government Financial

Consumer Price Index

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

Brazil Consumer Price Index

(Source: Oecd.org)

 

Interest Rates

Period

Federal funds rate

Money market interest rate

Reference rate

Financial basic rate

Long-term interest rate

 

% p.m.

% p.y.

% p.m.

% p.y.

% p.m.

% p.y.

% p.m.

% p.y.

% p.m.

% p.y.

2010

Jan

0.66

8.65

0.66

8.62

0.00

0.00

0.65

8.49

0.49

6.00

Feb

0.59

8.65

0.59

8.62

0.00

0.00

0.57

8.36

0.49

6.00

Mar

0.76

8.65

0.76

8.61

0.08

0.87

0.75

8.53

0.49

6.00

Apr

0.67

8.72

0.66

8.70

0.00

0.00

0.63

8.22

0.49

6.00

May

0.75

9.40

0.75

9.38

0.05

0.61

0.71

8.88

0.49

6.00

Jun

0.79

9.94

0.79

9.91

0.06

0.71

0.73

9.11

0.49

6.00

Jul

0.86

10.32

0.86

10.30

0.12

1.33

0.83

9.88

0.49

6.00

Aug

0.89

10.66

0.89

10.64

0.09

1.05

0.86

10.33

0.49

6.00

Sep

0.85

10.66

0.84

10.62

0.07

0.85

0.84

10.57

0.49

6.00

Oct

0.81

10.66

0.81

10.64

0.05

0.60

0.79

10.39

0.49

6.00

Nov

0.81

10.66

0.81

10.64

0.03

0.42

0.77

10.20

0.49

6.00

Dec

0.93

10.66

0.93

10.64

0.14

1.55

0.87

9.98

0.49

6.00

2009

0.73

8.65

0.72

8.61

0.05

0.61

0.71

8.49

0.49

6.0

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

(Source: Central Bank of BrazilXL 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.

 

Money Supply (BRL million)

Period

M1

M2

M3

M4

2010

Jan

227,475

1,146,429

2,194,984

2,596,400

Feb

225,060

1,149,968

2,202,445

2,619,851

Mar

229,297

1,162,640

2,223,577

2,661,130

Apr

228,663

1,158,509

2,227,204

2,655,529

May

231,206

1,172,262

2,253,844

2,693,083

Jun

234,717

1,191,153

2,283,556

2,739,808

Jul

235,838

1,202,008

2,321,859

2,776,360

Aug

242,749

1,226,484

2,370,446

2,838,369

Sep

248,500

1,255,385

2,427,501

2,942,797

Oct

248,652

1,266,464

2,465,791

3,004,501

Nov

258,547

1,300,296

2,496,321

3,038,169

Dec

280,141

1,338,667

2,527,230

3,046,797

2009

250,234

1,167,424

2,206,319

2,605,702

 

 

(Source: Central Bank of BrazilXL Sheet)

Total Expenditures

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

(Source: Central Bank of BrazilXL Sheet)

Official Exchange Rate

Brazil Exchange Rate

(Source: Central Bank of BrazilXL 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 BrazilXL 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.

Brazil Tax Revenue

 

(Source: Central Bank of Brazil XL Sheet)

Balance of Payments

Brazil Balance of Payments (USD million)

 

Balance on goods

Balance Services and income

Current account

Capital and financial account

Overall balance

Current account/GDP (%)

FDI/GDP (%)

 

2010

 

20,267

 

-70,630

 

-47,518

 

100,102

 

49,101

 

1.62

 

2.33

 

2009

 

25,290

 

-52,930

 

-24,302

 

71,301

 

46,651

 

-1.52

 

-2.28

 

 

 

(Source: Central Bank of BrazilXL Sheet)

[Top] Labour Force and Employment Overview

Labour Force Data

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

Labour Force Data 2009-2010 ('000)

Specification

Dec-10

Dec-09

Economically active persons

23,702

23,407

Non- economically active persons

17,888

17,727

Employed persons

22,450

21,815

Unemployed persons

1,251

1,592

Employment rate (%)

94.7

93.2

Unemployment rate (%)

5.3

6.8

 

 










 

(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.

Brazil Unemployment Rate

 

(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.

Brazil Average Monthly Income

 

(Source: Brazilian institute of Geography and Statistics)

[Top] Political Stability

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 113th freest economy in 2011. The country is below the world and regional average. It is ranked 21st out of 29 countries in Central American and Caribbean region.

 

Brazil Economic Freedom Indices

(Source: heritage.org)

Corruption Perception

Brazil ranks 69th 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 58th 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)

[Top] Demographic Overview

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.

Brazil Average Annual Growth Rate

(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.

 

Brazil Population by Gender

 

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.

Brazil Population Balance by Age


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.

Brazil Infant Mortality Rate

 

(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 73rd 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.

Brazil Level of Poverty

(Source: Brazilian institute of Geography and Statistics)

[Top] Soft Infrastructure

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%.

 

Illiteracy for 15 andolder, 2009 (%)

15-24 Years

4.6

25-39 Years

17.4

40-59 Years

35.4

60-64 Years

9.7

65 Years and above

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%.

Illiteracy for 15 andolder, 2009 (%)

Men

20.9

Women

19.8

Urban

16.7

Rural

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)

Hospital beds in facilities in Brazil (1990-2009)

Year

Total

Public

Private

2009

431,996

152,892

279,104

2005

443,210

148,966

294,244

2002

471,171

146,319

324,852

1999

484,945

143,074

341,871

1992

544,357

135,080

409,277

1990

533,558

124,815

408,743

 

 

 

 

 

 

 

(Source: Brazilian institute of Geography and Statistics)

[Top] Hard Infrastructure

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:

Busiest Airports in Brazil (Passenger Traffic)

Town

Airport name

Runway length (ft.)

 

Sao Paulo

Sao Paulo Guarulhos International Airport

 

12,100

 

Brasilia

Brasilia - Presidente Juscelino Kubitschek International Airport

 

10,400

 

Sao Paulo

São Paulo - Congonhas International Airport (CGH):

 

6,300

 

Rio De Janeiro

Galeao - Antonio Carlos Jobim International Airport (GIG):

 

13,100

 

Salvador

Salvador - Deputado Luís Eduardo Magalhaes International Airport (SSA):

 

9,800

 

Belo Horizonte

Tancredo Neves / Confins International Airport (CNF):

 

9,800

Rio De Janeiro

Rio de Janeiro - Santos Dumont Airport (SDU):

 

4,300

Recife

Recife Airport - Guararapes International Airport (REC):

9,800

Porto Alegre

Porto Alegre Airport - Salgado Filho International Airport (POA):

7,400

Fortaleza

Fortaleza Airport - Pinto Martins International Airport (FOR):

8,300

Campinas

Viracopos-Campinas International Airport (VCP):

10,600

Curitiba

Curitiba airport - Afonso Pena International Airport (CWB):

7,200

Florianopolis

Florianopolis Airport - Hercílio Luz International Airport (FLN):

7,500

Natal

Augusto Severo / Natal International Airport (NAT):

7,400

Manaus

Manaus Airport - Eduardo Gomes International Airport (MAO):

8,800

Vitoria

Vitória Airport -  Goiabeiras (VIX):

5,700

Belem

Belém Airport - Val de Cães International Airport (BEL):

9,100

Cuiaba

Cuiabá Airport - Marechal Rondon International Airport (CGB):

7,500

Goiania

Goiânia Airport - Santa Genoveva Airport (GYN):

7,200

Maceio

Maceió Airport - Zumbi dos Palmares International Airport (MCZ):

7,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 










(Source: aircraft-charter-world.com)

Internet access

 

Brazil Internet Users

 

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

(Source: internetworldstats)

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