All values, unless otherwise stated, are in US dollars.
The economy of Brazil is historically the largest in Latin America and the Southern Hemisphere in nominal terms.[30] The Brazilian economy is the third largest in the Americas. It is an upper-middle incomedevelopingmixed economy.[31] In 2024, according to International Monetary Fund (IMF), Brazil has the 8th largest gross domestic product (GDP) in the world and has the 8th largest purchasing power parity in the world.[4][5] In 2024, according to Forbes, Brazil was the 7th largest country in the world by number of billionaires.[32] Brazil is one of the ten chief industrial states in the world according to International Labour Organization.[33] According to International Monetary Fund (IMF), Brazilian nominal GDP was US$2.331 trillion, the country has a long history of being among the largest economies in the world and the GDP per capita was US$11,178 per inhabitant.[4][5]
The country is rich in natural resources. From 2000 to 2012, Brazil was one of the fastest-growing major economies in the world, with an average annual GDP growth rate of over 5%. Its GDP surpassed that of the United Kingdom in 2012, temporarily making Brazil the world's sixth-largest economy. However, Brazil's economic growth decelerated in 2013[34] and the country entered a recession in 2014. The economy started to recover in 2017, with a 1% growth in the first quarter, followed by a 0.3% growth in second quarter compared to the same period of the previous year. It officially exited the recession.
According to the World Economic Forum, Brazil was the top country in upward evolution of competitiveness in 2009, gaining eight positions among other countries, overcoming Russia for the first time, and partially closing the competitiveness gap with India and China among the BRICS economies. Important steps taken since the 1990s toward fiscal sustainability, as well as measures taken to liberalize and open the economy, have significantly boosted the country's competitiveness fundamentals, providing a better environment for private-sector development.[35]
From a colony focused on primary sector goods (sugar, gold and cotton), Brazil managed to create a diversified industrial base during the 20th century. The steel industry is a prime example of that, with Brazil being the 9th largest steel producer in 2018, and the 5th largest steel net exporter in 2018.[37]Gerdau is the largest producer of long steel in the Americas, and Vale is the largest producer of iron ore in the world.[38]Petrobras, the Brazilian oil and gas company, is the most valuable company in Latin America.[39]
In the Portuguese Empire, Brazil was a colony subjected to an imperial mercantile policy, which had three main large-scale economic production cycles – sugar, gold and from the early 19th century on, coffee. The economy of Brazil was heavily dependent on African slave labor until the late 19th century (about 3 million imported African slaves in total). In that period Brazil was also the colony with the largest number of European settlers, most of them Portuguese (including Azoreans and Madeirans) but also some Dutch (see Dutch Brazil), Spaniards, English, French, Germans, Flemish, Danish, Scottish and Sephardic Jews.
In 2007, with a population of over 190 million and abundant natural resources, Brazil is one of the ten largest markets in the world, producing tens of millions of tons of steel, 26 million tons of cement, 3.5million television sets, and 3 million refrigerators. In addition, about 70million cubic meters of petroleum were being processed annually into fuels, lubricants, propane gas, and a wide range of hundreds of petrochemicals.[41][42]
Brazil has at least 161,500 kilometers of paved roads, more than 150 gigawatts of installed electric power capacity[43] and its real per capita GDP surpassed US$9,800 in 2017.[44][45] Its industrial sector accounts for three-fifths of the South American economy's industrial production.[46] The country's scientific and technological development is argued to be attractive to foreign direct investment, in 2019, Brazil occupied the 4th largest destination for foreign investments, behind only the United States, China and Singapore.[47]
The agricultural sector, locally called the agronegócio (agro-business), has also been dynamic: for two decades this sector has kept Brazil among the most highly productive countries in areas related to the rural sector.[46] The agricultural sector and the mining sector also supported trade surpluses which allowed for massive currency gains (rebound) and external debt paydown. Due to a downturn in Western economies, Brazil found itself in 2010 trying to halt the appreciation of the real.[48]
One of the most important corruption cases in Brazil concerns the company Odebrecht. Since the 1980s, Odebrecht has spent several billion dollars in the form of bribes to bribe parliamentarians to vote in favour of the group. At the municipal level, Odebrecht's corruption was aimed at "stimulating privatisations", particularly in water and sewer management.[50]
Brazilian bonds had an Inverted yield curve in August 2014 when the 1 year bond got above the 10 year bond
10 year bond
5 year bond
1 year bond
Brazil Inflation 1981-1995
Brazil inflation 1996-2022
Brazil is one of the ten chief industrial states in the world according to ILO[51]
The following table shows the main economic indicators in 1980–2023 (with IMF estimates for 2024–2028). Inflation below 5% is in green.[52]
Year
GDP
(in bn. US$PPP)
GDP per capita
(in US$ PPP)
GDP
(in bn. US$nominal)
GDP per capita
(in US$ nominal)
GDP growth
(real)
Inflation rate
(in Percent)
Unemployment
(in Percent)
Government debt
(in% of GDP)
1980
570.5
4,811.9
145.8
1,203.6
9.2%
90.2%
n/a
n/a
1981
597.0
4,925.3
167.6
1,353.0
−4.4%
101.7%
n/a
n/a
1982
637.7
5,147.3
179.2
1,415.3
0.6%
100.6%
n/a
n/a
1983
640.1
5,057.3
143.7
1,110.7
−3.4%
135.0%
n/a
n/a
1984
698.4
5,402.7
143.0
1,082.2
5.3%
192.1%
n/a
n/a
1985
777.4
5,890.6
226.9
1,682.8
7.9%
226.0%
n/a
n/a
1986
852.9
6,334.2
263.3
1,913.3
7.5%
147.1%
n/a
n/a
1987
905.5
6,596.4
286.5
2,042.9
3.6%
228.3%
n/a
n/a
1988
939.9
6,722.2
320.1
2,240.5
0.3%
629.1%
n/a
n/a
1989
1,008.0
7,083.3
439.4
3,022.0
3.2%
1430.7%
n/a
n/a
1990
1,002.1
6,836.1
455.3
3,108.8
−4.2%
2947.7%
n/a
n/a
1991
1,046.7
7,020.5
399.2
2,717.5
1.0%
432.8%
10.1%
n/a
1992
1,065.6
7,031.3
382.5
2,561.1
−0.5%
952.0%
11.6%
n/a
1993
1,141.7
7,414.4
429.2
2,828.5
4.7%
1927.4%
11.0%
n/a
1994
1,228.3
7,852.0
546.8
3,547.0
5.3%
2075.8%
10.5%
n/a
1995
1,309.4
8,364.1
770.9
4,923.9
4.4%
66.0%
9.9%
n/a
1996
1,362.9
8,457.1
851.1
5,281.7
2.2%
15.8%
11.2%
n/a
1997
1,433.4
8,757.6
883.9
5,400.0
3.4%
6.9%
11.6%
n/a
1998
1,454.5
8,749.7
864.3
5,199.5
0.3%
3.2%
14.7%
n/a
1999
1,481.9
8,816.5
599.6
3,567.6
0.5%
4.9%
14.7%
n/a
2000
1,581.9
9,328.0
655.5
3,864.9
4.4%
7.0%
13.9%
65.6%
2001
1,640.1
9,536.6
560.0
3,256.2
1.4%
6.8%
12.5%
70.1%
2002
1,716.5
9,852.9
509.8
2,926.3
3.1%
8.5%
13.0%
78.8%
2003
1,770.3
10,037.8
558.2
3,165.2
1.1%
14.7%
13.7%
73.8%
2004
1,922.6
10,772.3
669.3
3,750.1
5.8%
6.6%
12.9%
70.1%
2005
2,046.3
11,334.1
891.6
4,938.5
3.2%
6.9%
11.4%
68.6%
2006
2,193.1
12,012.3
1,107.6
6,067.0
4.0%
4.2%
11.5%
65.8%
2007
2,389.0
12,949.0
1,397.1
7,572.6
6.1%
3.6%
10.9%
64.1%
2008
2,558.9
13,726.5
1,695.9
9,096.9
5.1%
5.7%
9.4%
62.3%
2009
2,572.1
13,638.5
1,669.2
8,851.1
−0.1%
4.9%
9.7%
65.5%
2010
2,798.9
14,672.8
2,208.7
11,578.7
7.5%
5.0%
8.5%
63.0%
2011
2,970.6
15,491.0
2,614.0
13,631.4
4.0%
6.6%
7.8%
61.2%
2012
2,998.5
15,555.6
2,464.1
12,782.8
1.9%
5.4%
7.4%
62.2%
2013
3,133.9
16,168.6
2,471.7
12,752.3
3.0%
6.2%
7.2%
60.2%
2014
3,187.2
16,352.3
2,456.1
12,601.3
0.5%
6.3%
6.9%
62.3%
2015
3,014.8
15,379.9
1,800.0
9,183.0
−3.5%
9.0%
8.6%
72.6%
2016
2,939.1
14,915.4
1,796.6
9,117.6
−3.3%
8.7%
11.7%
78.3%
2017
3,018.7
15,242.7
2,063.5
10,419.6
1.3%
3.4%
12.9%
83.6%
2018
3,146.4
15,805.9
1,916.9
9,629.6
1.8%
3.7%
12.4%
85.6%
2019
3,241.9
16,176.0
1,873.3
9,364.2
1.2%
3.7%
12.0%
87.1%
2020
3,335.9
16,063.9
1,476.1
7,057.5
−3.3%
3.2%
13.8%
96.0%
2021
3,787.7
18,028.3
1,670.6
7,952.6
5.0%
8.3%
13.2%
90.1%
2022
4,180.2
19,824.7
1,951.0
9,256.3
3.0%
9.4%
9.3%
85.3%
2023
4,456.6
21,052.9
2,173.8
10,268.0
3.2%
3.7%
8.3%
88.0%
2024
4,702.0
22,123.5
2,188.4
10,296.2
3.5%
3.4%
8.2%
90.3%
2025
4,890.9
22,928.1
2,307.1
10,816.8
2.2%
3.3%
8.1%
92.4%
2026
5,094.0
23,799.3
2,444.9
11,423.8
2.3%
3.0%
8.1%
93.9%
2027
5,309.5
24,728.8
2,571.5
11,977.4
2.4%
3.0%
8.0%
95.0%
2028
5,539.3
25,724.6
2,709.5
12,583.1
2.5%
3.0%
7.9%
96.0%
2029
5,780.4
26,771.9
2,854.9
13,222.9
2.5%
3.0%
7.2%
98.0%
Components
The service sector is the largest component of the gross domestic product (GDP) at 67.0 percent, followed by the industrial sector at 27.5 percent. Agriculture represents 5.5 percent of GDP (2011).[53] The Brazilian labor force is estimated at 100.77 million of which 10 percent is occupied in agriculture, 19 percent in the industry sector and 71 percent in the service sector.
In the production of animal proteins, Brazil is today one of the largest countries in the world. In 2019, the country was the world's largest exporter of chicken meat.[55][56] It was also the second largest producer of beef,[57] the world's third largest producer of milk,[58] the world's fourth largest producer of pork[59] and the seventh largest producer of eggs in the world.[60]
Agribusiness contributes to Brazil's trade balance, in spite of trade barriers and subsidizing policies adopted by the developed countries.[61]
In the space of fifty five years (1950 to 2005), the population of Brazil grew from 51 million to approximately 187million inhabitants,[62] an increase of over 2 percent per year. Brazil created and expanded a complex agribusiness sector.[61] However, some of this is at the expense of the environment, including the Amazon.
The importance given to the rural producer takes place in the shape of the agricultural and cattle-raising plan and through another specific subsidy program geared towards family agriculture Programa de Fortalecimento da Agricultura Familiar (Pronaf), which guarantees financing for equipment and cultivation and encourages the use of new technology. With regards to family agriculture, over 800 thousand rural inhabitants are assisted by credit, research and extension programs. A special line of credit is available for women and young farmers.[61]
With The Land Reform Program, on the other hand, the country's objective is to provide suitable living and working conditions for families who live in areas allotted by the State, an initiative capable of generating jobs. Through partnerships, public policies and international partnerships, the government is working towards guaranteeing infrastructure for the settlements, following the examples of schools and health outlets. The idea is that access to land represents just the first step towards the implementation of a quality land reform program.[61]
Over 600,000km2 of land are divided into approximately five thousand areas of rural property; an agricultural area currently with three borders: the Central-western region (savannah), the northern region (area of transition) and parts of the northeastern region (semi-arid). At the forefront of grain crops, which produce over 110 million tonnes/year, is the soybean, yielding 50million tonnes.[61]
In the cattle-raising sector, the "green ox," which is raised in pastures, on a diet of hay and mineral salts, conquered markets in Asia, Europe and the Americas, particularly after the "mad cow disease" scare period. Brazil has the largest cattle herd in the world, with 198 million heads,[63] responsible for exports of more than US$1billion/year.[61]
A pioneer and leader in the manufacture of short-fiber timber cellulose, Brazil has also achieved positive results within the packaging sector, in which it is the fifth largest world producer. In the foreign markets, it answers for 25 percent of global exports of raw cane and refined sugar; it is the world leader in soybean exports and is responsible for 80 percent of the planet's orange juice, and since 2003, has had the highest sales figures for beef and chicken.[61]
In the mining sector, Brazil stands out in the extraction of iron ore (where it is the second world exporter), copper, gold, bauxite (one of the 5 largest producers in the world), manganese (one of the 5 largest producers in the world), tin (one of the largest producers in the world), niobium (concentrates 98% of reserves known to the world) and nickel. In terms of gemstones, Brazil is the world's largest producer of amethyst, topaz, agate and one of the main producers of tourmaline, emerald, aquamarine, garnet and opal.[64][65][66][67][68][69]
In 2019, Brazil's figures were as follows: it was the world's largest producer of niobium (88.9 thousand tons);[70] the 2nd largest world producer of tantalum (430 tons);[71] the 2nd largest world producer of iron ore (405 million tons);[72] the 4th largest world producer of manganese (1.74 million tons);[73] the 4th largest world producer of bauxite (34 million tons);[74] the 4th largest world producer of vanadium (5.94 thousand tons);[75] the 5th largest world producer of lithium (2.4 thousand tons);[76] the 6th largest world producer of tin (14 thousand tons);[77] the 8th largest world producer of nickel (60.6 thousand tons);[78] the 8th largest world producer of phosphate (4.7 million tons);[79] the 12th largest world producer of gold (90 tons);[80] the 14th largest world producer of copper (360 thousand tons);[81][82] the 14th largest world producer of titanium (25 thousand tons);[83] the 13th largest world producer of gypsum (3 million tons);[84] the 3rd largest world producer of graphite (96 thousand tons);[85] the 21st largest world producer of sulfur (500 thousand tons);[86] the 9th largest world producer of salt (7.4 million tons);[87] besides having had a chromium production of 200 thousand tons.[82]
Embraer KC-390 military transport aircraft.VBTP-MR Guarani armoured personnel carrier.
Brazil has the second-largest manufacturing sector in the Americas. Accounting for 28.5 percent of GDP, Brazil's industries range from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables. With increased economic stability provided by the Plano Real, Brazilian and multinational businesses have invested heavily in new equipment and technology, a large proportion of which has been purchased from U.S. firms.
The World Bank lists the main producing countries each year, based on the total production value. According to the 2019 list, Brazil has the 13th most valuable industry in the world (US$173.6 billion). In the Americas, it is second only to the United States (2nd place) and Mexico (12th place).[89] In the food industry, in 2019, Brazil was the second largest exporter of processed foods in the world.[90][91][92] In 2016, the country was the 2nd largest producer of pulp in the world and the 8th producer of paper.[93][94][95] In the footwear industry, in 2019, Brazil ranked 4th among world producers.[96][97][98][99] In 2019, the country was the 8th producer of vehicles and the 9th producer of steel in the world.[100][101][102] In 2018, the chemical industry of Brazil was the 8th in the world.[103][104][105] In textile industry, Brazil, although it was among the 5 largest world producers in 2013, is very little integrated in world trade.[106] In the aviation sector, Brazil has Embraer, the third largest aircraft manufacturer in the world, behind Boeing and Airbus.
Brazil has a diverse and sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16 percent of the GDP. Although undergoing a major overhaul, Brazil's financial services industry provides local businesses with a wide range of products and is attracting numerous new entrants, including U.S. financial firms. On 8 May 2008, the São Paulo Stock Exchange (Bovespa) and the São Paulo-based Brazilian Mercantile and Futures Exchange (BM&F) merged, creating BM&F Bovespa, one of the largest stock exchanges in the world. Also, the previously monopolistic reinsurance sector is being opened up to third-party companies.[107]As of[update] 31 December 2007, there were an estimated 21,304,000 broadband lines in Brazil. Over 75 percent of the broadband lines were via DSL and 10 percent via cable modems. Proven mineral resources are extensive. Large iron and manganese reserves are important sources of industrial raw materials and export earnings. Deposits of nickel, tin, chromite, uranium, bauxite, beryllium, copper, lead, tungsten, zinc, gold, and other minerals are exploited. High-quality coking-grade coal required in the steel industry is in short supply.
The first study into the impact of the Creative Industries on the Brazilian economy was published by FIRJAN.[111] The creative economy in Latin America was termed the "Orange Economy"[112] in a publication released by the Inter-American Development Bank (IDB). This 2013 study valued Brazil's Orange Economy at US$66.87 billion providing 5,280,000 jobs and responsible for US$9.414 million in exports, with the value of creative exports being higher than the US$8.016 million value of coffee exports over the same period.
A 2021 study into the Intellectual Property Intensive Sectors in the Brazilian Economy[113] was undertaken as part of the National Strategy on Intellectual Property 2021–2030.[114] The study found that 450 of the 673 economic classes could be classified as IP-intensive sectors that collectively employed 19.3 million people. The share of GDP between 2014 and 2016 across these economic classes amounted to R$2.1 trillion reais or 44.2% of GDP over this time.
In the list of world tourist destinations, in 2018, Brazil was the 48th most visited country, with 6.6 million tourists (and revenues of 5.9 billion dollars). Tourism in South America as a whole is still underdeveloped: in Europe, for example, countries obtain annual tourism figures like $73.7 billion (Spain), receiving 82.7 million tourists or 67.3 billion (France), receiving 89.4 million tourists. While Europe received 710 million tourists in 2018, Asia 347 million and North America 142.2 million, South America received only 37 million, Central America 10.8 million and the Caribbean 25.7 million.[115]
In 2017, 20 Brazilian companies were listed in the Forbes Global 2000 list – an annual ranking of the top 2000 public companies in the world by Forbes magazine based on a combination of sales, assets, profit, and market value.[116] The 20 companies listed were:
The Brazilian government has undertaken an ambitious program to reduce dependence on imported petroleum. Imports previously accounted for more than 70% of the country's oil needs but Brazil became self-sufficient in oil in 2006–2007. Brazil was the 10th largest oil producer in the world in 2019, with 2.8 million barrels / day. Production manages to supply the country's demand.[117] In the beginning of 2020, in the production of oil and natural gas, the country exceeded 4 million barrels of oil equivalent per day, for the first time. In January this year, 3.168 million barrels of oil per day and 138.753 million cubic meters of natural gas were extracted.[118]
Brazil is one of the main world producers of hydroelectric power. In 2019, Brazil had 217 hydroelectric plants in operation, with an installed capacity of 98,581 MW, 60.16% of the country's energy generation.[119] In the total generation of electricity, in 2019 Brazil reached 170,000 megawatts of installed capacity, more than 75% from renewable sources (the majority, hydroelectric).[120][121]
In 2013, the Southeast Region used about 50% of the load of the National Integrated System (SIN), being the main energy consuming region in the country. The region's installed electricity generation capacity totaled almost 42,500 MW, which represented about a third of Brazil's generation capacity. The hydroelectric generation represented 58% of the region's installed capacity, with the remaining 42% corresponding basically to the thermoelectric generation. São Paulo accounted for 40% of this capacity; Minas Gerais by about 25%; Rio de Janeiro by 13.3%; and Espírito Santo accounted for the rest. The South Region owns the Itaipu Dam, which was the largest hydroelectric plant in the world for several years, until the inauguration of Three Gorges Dam in China. It remains the second largest operating hydroelectric in the world. Brazil is the co-owner of the Itaipu Plant with Paraguay: the dam is located on the Paraná River, located on the border between countries. It has an installed generation capacity of 14 GW for 20 generating units of 700 MW each. North Region has large hydroelectric plants, such as Belo Monte Dam and Tucuruí Dam, which produce much of the national energy. Brazil's hydroelectric potential has not yet been fully exploited, so the country still has the capacity to build several renewable energy plants in its territory.[122][123]
As of July2022,[ref] according to ONS, total installed capacity of wind power was 22 GW, with average capacity factor of 58%.[124][125] While the world average wind production capacity factors is 24.7%, there are areas in Northern Brazil, specially in Bahia State, where some wind farms record with average capacity factors over 60%;[126][44] the average capacity factor in the Northeast Region is 45% in the coast and 49% in the interior.[127] In 2019, wind energy represented 9% of the energy generated in the country.[128] In 2019, it was estimated that the country had an estimated wind power generation potential of around 522 GW (this, only onshore), enough energy to meet three times the country's current demand.[129][130] In 2021 Brazil was the 7th country in the world in terms of installed wind power (21 GW),[131][132] and the 4th largest producer of wind energy in the world (72 TWh), behind only China, USA and Germany.[133]
Nuclear energy accounts for about 4% of Brazil's electricity.[134] The nuclear power generation monopoly is owned by Eletronuclear (Eletrobrás Eletronuclear S/A), a wholly owned subsidiary of Eletrobrás. Nuclear energy is produced by two reactors at Angra. It is located at the Central Nuclear Almirante Álvaro Alberto (CNAAA) on the Praia de Itaorna in Angra dos Reis, Rio de Janeiro. It consists of two pressurized water reactors, Angra I, with capacity of 657 MW, connected to the power grid in 1982, and Angra II, with capacity of 1,350 MW, connected in 2000. A third reactor, Angra III, with a projected output of 1,350 MW, is planned to be finished.[135]
As of October2022,[ref] according to ONS, total installed capacity of photovoltaic solar was 21 GW, with average capacity factor of 23%.[136] Some of the most irradiated Brazilian States are MG ("Minas Gerais"), BA ("Bahia") and GO (Goiás), which have indeed world irradiation level records.[137][44][138] In 2019, solar power represented 1,27% of the energy generated in the country.[128] In 2021, Brazil was the 14th country in the world in terms of installed solar power (13 GW),[139] and the 11th largest producer of solar energy in the world (16.8 TWh).[140]
In 2020, Brazil was also the 2nd largest country in the world in the production of energy through biomass (energy production from solid biofuels and renewable waste), with 15,2 GW installed.[141]
Transport in Brazil is basically carried out using the road mode, the most developed in the region. There is also a considerable infrastructure of ports and airports. The railway and fluvial sector, although it has potential, is usually treated in a secondary way.
Brazil has more than 1.7million km of roads, of which 215,000km are paved, and about 17,000km are divided highways. The two most important highways in the country are BR-101 and BR-116.[142] Due to the Andes Mountains, Amazon River and Amazon Forest, there have always been difficulties in implementing transcontinental or bioceanic highways. Practically the only route that existed was the one that connected Brazil to Buenos Aires, in Argentina and later to Santiago, in Chile. However, in recent years, with the combined effort of South American countries, new routes have started to emerge, such as Brazil-Peru (Interoceanic Highway), and a new highway between Brazil, Paraguay, northern Argentina and northern Chile (Bioceanic Corridor).
There are more than 2,000 airports in Brazil. The country has the second largest number of airports in the world, behind only the United States. São Paulo International Airport, located in the Metropolitan Region of São Paulo, is the largest and busiest in the country – the airport connects São Paulo to practically all major cities around the world. Brazil has 44 international airports, such as those in Rio de Janeiro, Brasília, Belo Horizonte, Porto Alegre, Florianópolis, Cuiabá, Salvador, Recife, Fortaleza, Belém and Manaus, among others. The 10 busiest airports in South America in 2017 were: São Paulo-Guarulhos (Brazil), Bogotá (Colombia), São Paulo-Congonhas (Brazil), Santiago (Chile), Lima (Peru), Brasília (Brazil), Rio de Janeiro (Brazil), Buenos Aires-Aeroparque (Argentina), Buenos Aires-Ezeiza (Argentina), and Minas Gerais (Brazil).[143]
About ports, Brazil has some of the busiest ports in South America, such as Port of Santos, Port of Rio de Janeiro, Port of Paranaguá, Port of Itajaí, Port of Rio Grande, Port of São Francisco do Sul and Suape Port. The 15 busiest ports in South America are: Port of Santos (Brazil), Port of Bahia de Cartagena (Colombia), Callao (Peru), Guayaquil (Ecuador), Buenos Aires (Argentina), San Antonio (Chile), Buenaventura (Colombia), Itajaí (Brazil), Valparaíso (Chile), Montevideo (Uruguay), Paranaguá (Brazil), Rio Grande (Brazil), São Francisco do Sul (Brazil), Manaus (Brazil) and Coronel (Chile).[144]
The Brazilian railway network has an extension of about 30,000 kilometers. It is basically used for transporting ores.[145]
Among the main Brazilian waterways, two stand out: Hidrovia Tietê-Paraná (which has a length of 2,400km, 1,600 on the Paraná River and 800km on the Tietê River, draining agricultural production from the states of Mato Grosso, Mato Grosso do Sul, Goiás and part of Rondônia, Tocantins and Minas General) and Hidrovia do Solimões-Amazonas (it has two sections: Solimões, which extends from Tabatinga to Manaus, with approximately 1600km, and Amazonas, which extends from Manaus to Belém, with 1650km.
Almost entirely passenger transport from the Amazon basin is done by this waterway, in addition to practically all cargo transportation that is directed to the major regional centers of Belém and Manaus). In Brazil, this transport is still underutilized: the most important waterway stretches, from an economic point of view, are found in the Southeast and South of the country. Its full use still depends on the construction of locks, major dredging works and, mainly, of ports that allow intermodal integration.
The country also exports maize, coffee, cotton, tobacco, orange juice, footwear, airplanes, helicopters, cars, vehicle parts, gold, ethanol, semi-finished iron, among others.[149][150]
Exports
The main countries to which Brazil exports in 2021 were:[151]
China: US$87.6 billion (31.28%)
United States: US$31.1 billion (11.09%)
Argentina: US$11.8 billion (4.24%)
Netherlands: US$9.3 billion (3.32%)
Chile: US$6.9 billion (2.50%)
Singapore: US$5.8 billion (2.10%)
Mexico: US$5.5 billion (1.98%)
Germany: US$5.5 billion (1.97%)
Japan: US$5.5 billion (1.97%)
Spain: US$5.4 billion (1.94%)
The country's export model, until today, is excessively based on exports of basic or semi-manufactured products, generating criticism, since such model generates little monetary value, which prevents further growth in the country in the long run. There are several factors that cause this problem, the main ones being: the excessive collection of taxes on production (due to the country's economic and legislative model being based on State Capitalism and not on Free-Market Capitalism), the lack or deficiency of infrastructure (means of transport such as roads, railways and ports that are insufficient or weak for the country's needs, bad logistics and excessive bureaucracy) for export, high production costs (expensive energy, expensive fuel, expensive maintenance of trucks, expensive loan rates and bank financing for production, expensive export rates), the lack of an industrial policy, the lack of focus on adding value, the lack of aggressiveness in international negotiations, in addition to abusive tariff barriers imposed by other countries on the country's exports. Because of this, Brazil has never been very prominent in international trade.
Due to its size and potential, it would be able to be among the 10 largest exporters in the world, however, its participation in global commercial transactions usually oscillates between 0.5 and 2% only. In 2019, among the ten products that Brazil exports the most and that generate the most value, eight come from the agribusiness. Although still modest, the country's exports have evolved, and today they are more diversified than they were in the past. At the beginning of the 20th century, 70% of Brazilian exports were restricted to coffee. Overall, however, global trade still concentrates its few exports on low-tech products (mainly agricultural and mineral commodities) and, therefore, with low added value.[152][153][154][155][156]
Imports
The main countries from which Brazil imports in 2021 were:[151]
Portuguese explorers arrived in 1500, but it was only in 1808 that Brazil obtained a permit from the Portuguese colonial government to set up its first factories and manufacturers. In the 21st century, Brazil became the eighth largest economy in the world. Originally, its exports were basic raw and primary goods, such as sugar, rubber and gold. Today, 84% of exports are of manufactured and semi-manufactured products.
The period of great economic transformation and growth occurred between 1875 and 1975.[160]
In the last decade, domestic production increased by 32.3%. Agribusiness (agriculture and cattle-raising), which grew by 47% or 3.6% per year, was the most dynamic sector – even after having weathered international crises that demanded constant adjustments to the Brazilian economy.[161] The Brazilian government also launched a program for economic development acceleration called Programa de Aceleração do Crescimento, aiming to spur growth.[162]
Among measures recently adopted to balance the economy, Brazil carried out reforms to its social security (state and retirement pensions) and tax systems. These changes brought with them a noteworthy addition: a Law of Fiscal Responsibility which controls public expenditure by the executive branches at federal, state and municipal levels. At the same time, investments were made towards administration efficiency and policies were created to encourage exports, industry and trade, thus creating "windows of opportunity" for local and international investors and producers.
With these alterations in place, Brazil has reduced its vulnerability: it does not import the oil it consumes; it has halved its domestic debt through exchange rate-linked certificates and has seen exports grow, on average, by 20% a year. The exchange rate does not put pressure on the industrial sector or inflation (at 4% a year), and does away with the possibility of a liquidity crisis. As a result, the country, after 12 years, has achieved a positive balance in the accounts which measure exports/imports, plus interest payments, services and overseas payment. Thus, respected economists say that the country will not be deeply affected by the current world economic crisis.[164]
In 2017, President Michel Temer refused to make public the list of companies accused of "modern slavery". The list, made public yearly since the presidency of Luís Inácio Lula da Silva in 2003, was intended to persuade companies to settle their fines and conform to labor regulations, in a country where corruption of the political class risked compromising respect for the law. The relations of the president-in-office with the "landowner lobby" were denounced by dismissed President Dilma Rousseff on this occasion.[165]
Support for the productive sector has been simplified at all levels; active and independent, Congress and the Judiciary Branch carry out the evaluation of rules and regulations. Among the main measures taken to stimulate the economy are the reduction of up to 30 percent on manufactured products tax (IPI), and the investment of $8billion on road cargo transportation fleets, thus improving distribution logistics. Further resources guarantee the propagation of business and information telecenters.
The policy for industry, technology and foreign trade, at the forefront of this sector, for its part, invests $19.5billion in specific sectors, following the example of the software and semiconductor, pharmaceutical and medicine product, and capital goods sectors.[166]
Mergers and acquisitions
Between 1985 and 2017, 11,563 mergers & acquisitions with a total known value of US$1,185billion with the involvement of Brazilian firms were announced.[167] The year 2010 was a new record in terms of value with $115billion of transactions. It is worth noticing, that in the top 100 deals by value there are only four cases of Brazilian companies acquiring a foreign company. This reflects the strong interest in the country from a direct investment perspective.
Here is a list of the largest deals where Brazilian companies took on either the role of the acquiror or the target:
According to a search of Global Entrepreneurship Monitor in 2011 Brazil had 27 million adults aged between 18 and 64 either starting or owning a business, meaning that more than one in four Brazilian adults were entrepreneurs. In comparison to the other 54 countries studied, Brazil was the third-highest in total number of entrepreneurs. The Institute of Applied Economic Research (Ipea), a government agency, found that 37million jobs in Brazil were associated with businesses with less than 10 employees.[168]
Even though Brazil ranks internationally as one of the hardest countries in the region to do business due to its complicated bureaucracy, there is a healthy number of entrepreneurs, thanks to the huge internal consumer market and various government programs.
The most recent research of Global Entrepreneurship Monitor revealed in 2013 that 50.4% of Brazilian new entrepreneurs are men, 33.8% are in the 35–44 age group, 36.9% completed high school and 47.9% earn 3–6 times the Brazilian minimum wage. In contrast, 49.6% of entrepreneurs are female, only 7% are in the 55–64 age group, 1% have postgraduate education and 1.7% earn more than 9 times the minimum wage.[169]
Credit rating
Brazil's credit rating was downgraded by Standard & Poor's (S&P) to BBB in March 2014, just one notch above junk.[170] It was further downgraded in January 2018 by S&P to BB−, which is 2 notches below investment grade.[171]
There are multiple impacts of climate change on basic Brazilian production systems, such as increasing existing shortages and increasing production costs.[172] It is also expected that more and more serious natural disasters will occur. This will likely result in major problems for food supply, public health, industrial production, trade, installed infrastructure, the general quality of life of the population and national security as a whole, with the poor suffering the most serious consequences. The areas most vulnerable to major impacts are the Northeast and Southeast regions, exactly where most of the Brazilian people are concentrated, and large cities, which in general are poorly prepared to face the challenge.[172]
The economy of Chile operates as a market economy and is classified as a high-income economy by the World Bank. It is recognized as one of the most prosperous countries in South America, leading the region in areas such as competitiveness, income per capita, globalization, economic freedom, and low levels of perceived corruption. Despite its prosperity, Chile experiences significant economic inequality, as reflected by its Gini index, though this is close to the regional average. Among Organisation for Economic Co-operation and Development (OECD) countries, Chile has a robust social security system, with social welfare expenditures amounting to approximately 19.6% of GDP.
The economy of Colombia is the fourth largest in Latin America as measured by gross domestic product and the third-largest economy in South America. Colombia has experienced a historic economic boom over the last decade. Throughout most of the 20th century, Colombia was Latin America's 4th and 3rd largest economy when measured by nominal GDP, real GDP, GDP (PPP), and real GDP at chained PPPs. Between 2012 and 2014, it became the third largest in Latin America by nominal GDP. As of 2024, the GDP (PPP) per capita has increased to over US$19,000, and real gross domestic product at chained PPPs increased from US$250 billion in 1990 to nearly US$800 billion. Poverty levels were as high as 65% in 1990, but decreased to under 30% by 2014, and 27% by 2018. They decreased by an average of 1.35% per year since 1990.
The economy of the Dominican Republic is the seventh largest in Latin America, and is the largest in the Caribbean and Central American region. The Dominican Republic is an upper-middle income developing country with important sectors including mining, tourism, manufacturing, energy, real estate, infrastructure, telecommunications and agriculture. The Dominican Republic is on track to achieve its goal of becoming a high-income country by 2030, and is expected to grow 79% in this decade. The country is the site of the single largest gold mine in Latin America, the Pueblo Viejo mine. Although the service sector is currently the leading employer of Dominicans, agriculture remains an important sector in terms of the domestic market and is in second place in terms of export earnings. Tourism accounts for more than $7.4 billion in annual earnings in 2019. Free-trade zone earnings and tourism are the fastest-growing export sectors. A leading growth engine in the Free-trade zone sector is the production of medical equipment for export having a value-added per employee of US$20,000, total revenue of US$1.5 billion, and a growth rate of 7.7% in 2019. The medical instrument export sector represents one of the highest-value added sectors of the country's economy, a true growth engine for the country's emerging market. Remittances are an important sector of the economy, contributing US$8.2 billion in 2020. Most of these funds are used to cover household expenses, such as housing, food, clothing, health care and education. Secondarily, remittances have financed businesses and productive activities. Thirdly, this combined effect has induced investment by the private sector and helps fund the public sector through its value-added tax. The combined import market including the free-trade-zones amounts to a market of $20 billion a year in 2019. The combined export sector had revenues totaling $11 billion in 2019. The consumer market is equivalent to $61 billion in 2019. An important indicator is the average commercial loan interest rate, which directs short-term investment and stimulates long-term investment in the economy. It is currently 8.30%, as of June 2021.
The economy of Ecuador is the eighth largest in Latin America and the 69th largest in the world by total GDP. Ecuador's economy is based on the export of oil, bananas, shrimp, gold, other primary agricultural products and money transfers from Ecuadorian emigrants employed abroad. In 2017, remittances constituted 2.7% of Ecuador's GDP. The total trade amounted to 42% of the Ecuador's GDP in 2017.
South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a considerably smaller portion in the Northern Hemisphere. It can also be described as the southern subregion of the Americas.
The economy of Vietnam is a developing mixed socialist-oriented market economy. It is the 33rd-largest economy in the world by nominal gross domestic product (GDP) and the 26th-largest economy in the world by purchasing power parity (PPP). It is a lower-middle income country with a low cost of living. Vietnam is a member of the Asia-Pacific Economic Cooperation, the Association of Southeast Asian Nations and the World Trade Organization.
The economy of Bolivia is the 95th-largest in the world in nominal terms and the 87th-largest in purchasing power parity. Bolivia is classified by the World Bank to be a lower middle income country. With a Human Development Index of 0.703, it is ranked 114th. Driven largely by its natural resources, Bolivia has become a region leader in measures of economic growth, fiscal stability and foreign reserves, although it remains a historically poor country. The Bolivian economy has had a historic single-commodity focus. From silver to tin to coca, Bolivia has enjoyed only occasional periods of economic diversification. Political instability and difficult topography have constrained efforts to modernize the agricultural sector. Similarly, relatively low population growth coupled with low life expectancy has kept the labor supply in flux and prevented industries from flourishing. Rampant inflation and corruption previously created development challenges, but in the early twenty-first century the fundamentals of its economy showed unexpected improvement, leading Moody's Investors Service to upgrade Bolivia's economic rating in 2010 from B2 to B1. The mining industry, especially the extraction of natural gas and zinc, currently dominates Bolivia's export economy.
Paraná is one of the 26 states of Brazil, in the south of the country. It is bordered in the north by São Paulo state, in the east by the Atlantic Ocean, in the south by Santa Catarina state and the province of Misiones, Argentina, and in the west by Mato Grosso do Sul and Paraguay, with the Paraná River as its western boundary. It is subdivided into 399 municipalities, and its capital is the city of Curitiba. Other major cities are Londrina, Maringá, Ponta Grossa, Cascavel, São José dos Pinhais and Foz do Iguaçu. The state is home to 5.4% of the Brazilian population and generates 6.2% of the Brazilian GDP.
São Paulo is one of the 26 states of the Federative Republic of Brazil and is named after Saint Paul of Tarsus. It is located in the Southeast Region and is bordered by the states of Minas Gerais to the north and northeast, Paraná to the south, Rio de Janeiro to the east and Mato Grosso do Sul to the west, in addition to the Atlantic Ocean to the southeast. It is divided into 645 municipalities. The total area is 248,219.481 square kilometres km2, which is equivalent to 2.9% of Brazil's surface, being slightly larger than the United Kingdom. Its capital is the municipality of São Paulo.
Pará is a state of Brazil, located in northern Brazil and traversed by the lower Amazon River. It borders the Brazilian states of Amapá, Maranhão, Tocantins, Mato Grosso, Amazonas and Roraima. To the northwest are the borders of Guyana and Suriname, to the northeast of Pará is the Atlantic Ocean. The capital and largest city is Belém, which is located at the Marajó bay, near the estuary of the Amazon river. The state, which is home to 4.1% of the Brazilian population, is responsible for just 2.2% of the Brazilian GDP.
Santa Catarina is one of the 27 federative units of Brazil. It is located in the centre of the country's Southern region. It is bordered to the north by the state of Paraná, to the south by the state of Rio Grande do Sul, to the east by the Atlantic Ocean, and to the west by the Argentine province of Misiones.
The economy of South America comprises approximately 434 million people living in the 12 sovereign states and three dependent territories of South America, which encompasses 6 percent of the world's population. South America ranks fifth in terms of nominal GDP by continent, behind North America and after Oceania.
The South Region of Brazil is one of the five regions of Brazil. It includes the states of Paraná, Rio Grande do Sul, and Santa Catarina, and covers 576,409.6 square kilometres (222,553.0 sq mi), being the smallest region of the country, occupying only about 6.76% of the territory of Brazil. Its whole area is smaller than that of the state of Minas Gerais, in Southeast Brazil, for example or the whole metropolitan France.
The Southeast Region of Brazil is composed of the states of Espírito Santo, Minas Gerais, Rio de Janeiro and São Paulo. It is the richest region of the country, responsible for approximately 60% of the Brazilian GDP, as São Paulo, Rio de Janeiro, and Minas Gerais are the three richest states of Brazil, the top three Brazilian states in terms of GDP. The Southeast of Brazil also has the highest GDP per capita among all Brazilian regions.
The agriculture of Brazil is historically one of the principal bases of Brazil's economy. As of 2024 the country is the second biggest grain exporter in the world, with 19% of the international market share, and the fourth overall grain producer. Brazil is also the world's largest exporter of many popular agriculture commodities like coffee, soybeans, organic honey, beef, poultry, cane sugar, açai berry, orange juice, yerba mate, cellulose, tobacco, and the second biggest exporter of maize, pork, cotton, and ethanol. The country also has a significant presence as producer and exporter of rice, wheat, eggs, refined sugar, cocoa, beans, nuts, cassava, sisal fiber, and diverse fruits and vegetables.
Brazilian industry has its earliest origin in workshops dating from the beginning of the 19th century. Most of the country's industrial establishments appeared in the Brazilian southeast, and, according to the Commerce, Agriculture, Factories and Navigation Joint, 77 establishments registered between 1808 and 1840 were classified as "factories" or "manufacturers". However, most, about 56 establishments, would be considered workshops by today's standards, directed toward the production of soap and tallow candles, snuff, spinning and weaving, foods, melting of iron and metals, wool and silk, amongst others. They used both slaves and free laborers.
Mining in Brazil is centered on the extraction of iron, copper, gold, aluminum, manganese, tin, niobium, and nickel. About gemstones, Brazil is the world's largest producer of amethyst, topaz, agate and is a big producer of tourmaline, emerald, aquamarine, garnet and opal.
The economy of Argentina is the second-largest national economy in South America, behind Brazil. Argentina is a developing country with a highly literate population, an export-oriented agricultural sector, and a diversified industrial base.
BR-364 is an inter-state highway in Brazil connecting the southeast state of São Paulo to the western state of Acre. The highway was opened in the 1960s and paved in the 1980s. It has brought economic development and population growth in the Amazon basin states of Rondônia and Acre. It is also important for the flow of agricultural and livestock production in the states of Rondônia, Mato Grosso and Goiás, for Brazilian domestic consumption and for export, predominately by Port of Santos.
Latin America as a region has multiple nation-states, with varying levels of economic complexity. The Latin American economy is an export-based economy consisting of individual countries in the geographical regions of North America, Central America, South America, and the Caribbean. The socioeconomic patterns of what is now called Latin America were set in the colonial era when the region was controlled by the Spanish and Portuguese empires. Up until independence in the early nineteenth century, colonial Latin American regional economies thrived and worked things out. Many parts of the region had favorable factor endowments of deposits of precious metals, mainly silver, or tropical climatic conditions and locations near coasts that allowed for the development of cane sugar plantations. In the nineteenth century following independence, many economies of Latin America declined. In the late nineteenth century, much of Latin America was integrated into the world economy as an exporter of commodities. Foreign capital investment, construction of infrastructure, such as railroads, growth in the labor sector with immigration from abroad, strengthening of institutions, and expansion of education aided industrial growth and economic expansion. A number of regions have thriving economies, but "poverty and inequality have been deeply rooted in Latin American societies since the early colonial era."
↑ Baten, Jörg; Stolz, Yvonne; Botelho, Tarcísio (2013). "Growth Effects of 19th century mass migration: "Fome Zero" for Brazil?". European Review of Economic History. 17–1: 95–121.
↑ Restrepo, Márquez, Felipe Buitrago, Iván Duque (2013). "The Orange Economy • An Infinite Opportunity"(PDF). Inter-American Development Bank. Archived(PDF) from the original on 9 October 2022. Retrieved 29 December 2021.{{cite web}}: CS1 maint: multiple names: authors list (link)
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213 million (2024) [3] 
3.69% YoY (Apr 2024) [8] 
36 (2023) [12] (104th)
$607.21 billion (2023) [22] 
