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Slower growth, but still a robust economic performance
In 2012 growth is expected to slow down to around 3.0%-3.5% as exports will decline. However, domestic demand and investments will keep up the economy
Despite still high inflation (around 7%) the central bank has surprisingly lowered interest rates in order to shield the economy from the Eurozone crisis and slowdown in global demand. But this comes at a time when the fiscal policy is quite expansionary
Solid solvency and excellent international liquidity positions. Stable investment ratings guarantee that Brazil’s large external financing requirements can be covered easily
In the mid-term more fiscal tightening and reform efforts (tax and pensions systems) are necessary, but rather improbable due to the political circumstances (lack of coalition and party discipline)
Fiscal balance (% of GDP)
Source: EIU / IMF
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General Information
Capital - Brasília
Government type - Federal republic
Currency - Real (BRL)
Population - 198.7 million
Status - Upper middle income country
(GDP/capita: US-$ 12,391 in 2011)
Main import sources (2010)
- China - 14.1%
- USA - 12.2%
- Argentina - 7.9%
- Germany - 6.9%
Main export markets (2010)
- China - 15.2%
- Argentina - 9.2%
- Netherlands - 5.1%
- USA - 4.6%
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Date December 2011
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