Some Facts About Brazil’s Economy

The Growing Power of Brazil

First Published Date: August 19, 2010 ADawnJournal.com

Brazil is a very interesting country with a very bright future if many economists are to be believed. Brazil, while considered a developing country in the past, is now one of the most important economies on Earth.

Brazil has the eighth largest economy in the world in terms of nominal GDP, and it ranks ninth in terms of purchasing power parity. Among all of the South American nations, it has the largest economy, and it has one of the fastest growing economies on Earth, with a GDP growth rate of five percent. Naturally, many are predicting that within a few decades, Brazil will have one of the five largest economies on the planet.

In 2009, Brazil was the top country in terms of upwards evolution of competitiveness. It gained eight positions, and passed Russia for the first time in history. Brazil is also beginning to close the gap with India and China.

Much of Brazil’s fast growth is as a result of the changes made to the economy in the 1990s, which focused on fiscal sustainability and the opening of the economy, helping to boost how competitive the economy is in the world. Brazil, as a result, now has a much better environment for private-sector development.

Brazil’s economy is in a wide amount of sectors. The country builds submarines and aircraft, as well as smaller-end technologies. In addition, Brazil was the only country in the entire Southern Hemisphere to help in the construction of the International Space Station.

Exports within the country amount to $158.9 billion. The biggest export for the economy of Brazil is transport equipment, iron ore, soybeans, footwear, coffee, automobiles and their parts, and machinery. The main countries that Brazil exports to are the United States (14 percent), Argentina (8.9 percent), China (8.3 percent), Netherlands (5.3 percent), Germany (4.5 percent) and Japan (3.1 percent)

Brazil imported $136 billion in goods in 2009, with their main imports being machinery, electric and transport equipment, oil, chemical products, automotive parts and electronics. The largest importers into the country are the United States (14.9 percent), China (11 percent), Argentina (7.7 percent), Germany (6.9 percent), Japan (3.9 percent), Nigeria (3.9 percent) and South Korea (3.1 percent).

Brazil, while greatly improving its economy, still has some work to do. The country still has a great deal of poverty, and low wages, along with environmental problems. However, as the country continues to move into the future, it is certain that it will become a leader on Earth in many sectors. Brazil already leads the world in the use of ethanol gas, with a large percentage of its vehicles running on ethanol. In the coming decades, most economists believe that the United States will fade in economic power, while Brazil, China, India and the European Union will grow in economic power to become the economic centers of the world. For many looking for countries to invest in, Brazil is a place that cannot go wrong for the time being, even weathering the worldwide recession quite easily.