Brazil Business Opportunities

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.

Key Industries:	Textiles, Shoes, Motor Vehicles and Parts, Chemicals, Cement, Lumber, Iron Ore, Tin, Steel, Aircraft, Other Machinery and Equipment
Key Imports:	Machinery, Automotive Parts, Oil, Electrical and Transport Equipment, Chemical Products, Electronics
Key Exports:	Soybeans, Autos, Coffee, Transport Equipment, Iron Ore, Footwear

Trade Environment

In 2007, the Country’s leading markets for exports were U.S. 15.8%, Argentina 9.0%, China 6.7% and Germany 4.5%. Its leading suppliers were U.S. 15.7%, China 10.5%, Argentina 8.6% and the Netherlands 0.9%. Its key trade agreement is the Mercosur pact, which includes Brazil, Uruguay, Paraguay and Venezuela.

Business and Market Sector Opportunities

Commodities • Manufacturing • Agriculture • Telecommunications • Retail Automotive • Banking • Energy • Oil and Gas

Economic Background and Situation

Capital inflows are regaining strength and the currency has resumed appreciating. The resilience in the economy stems from commodity-driven current account surpluses, and sound macroeconomic policies that have bolstered international reserves, reduced public debt, and allowed a significant decline in real interest rates. A floating exchange rate, an inflation-targeting regime, and a tight fiscal policy are the three key elements of the economic program. The President restated his commitment to fiscal responsibility by maintaining the country's primary surplus. Also, the President announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. The goal of achieving strong growth while reducing the debt burden could create inflationary pressures.

Additional Resources:

American Chamber of Commerce Brazil

Mercosur

Latin America Economics

Successful Market Economies in Latin America

Free Trade Agreements

South America Information

South America and Capitals

Information Resources

Latin American Chambers of Commerce

Brazil Fast Facts
Capital:	Brasilia
Key Cities:	Sao Paulo, Santos, Rio de Janeiro, Porto Alegre
Population	192 million (2007 E)
GDP Growth %	4.8 (‘08 E) 4.1 (‘09 F)
GDP	1,314.2 billion US$
GDP per Capita	6.845 US$
Inflation Rate Change (%)	4.7 (’08 E/’09 F)
Exports	193.9 (’09 F) billion US$
Imports	180.4 (’09 F) billion US$
Exchange Rate Local Currency-US$	1.74 (’08 F)
E = Estimate F = Forecast