Brazil's economy

The main articles are:

• Brazil
• World economy

GDP

2023

2.9% GDP growth to 10.9 trillion reais

At the end of 2023 GDP Brazil , it amounted to approximately 10.9 trillion Brazilian reais (about $1.9 trillion at the exchange rate as of August 5, 2023). This is 2.9% more than the result for the previous year. Such data in early March 2024 was published by the Brazilian Institute of Geography and Statistics (IBGE).

In the period from 2022 to 2023, agricultural activity showed an increase of 15.1%, which affected Brazil's GDP indicators. The increase in the field of industry and services was recorded at 1.6% and 2.4%, respectively. GDP per capita reached 50,194 reais ($8762.4), which is 2.2% more than in 2022. mining The industry indicators had a positive impact on the country's GDP in 2023. Activity in this area rose 8.7% due to an increase in oil and natural gas production, as well as iron ore.

Brazil's GDP grew by 2.9% over the year

In terms of demand, consumer spending of households was noted, which increased by 3.1% compared to 2022. It is said that state cash transfer programs have significantly helped increase household consumption, especially food and essential goods. Imports of goods and services fell 1.2% in 2023, while exports rose 9.1%. Government consumption rose 1.7% for the year. In the service sector, all activities have grown, in particular, the financial industry, insurance and related services showed an increase of 6.6%.

It is noted that the economy of Brazil is influenced by the growth in the production of corn and soybeans, as well as the extraction of oil and iron ore. Of the total GDP value of 10.9 trillion reais, 9.5 trillion reais are related to added value in base prices, while 1.4 trillion reais are attributable to product taxes minus subsidies. The level of investment in 2023 was 16.5% of GDP, which is lower than in 2022.^[1]

Eighth in the world in GDP by PPP

2.1% growth forecast

2022

2.9% GDP growth

In 2022 Brazil , the economy grew by 2.9%. This is evidenced by data from the Brazilian Institute of Geography and Statistics, which were published in early March 2023.

In the fourth quarter of 2022, GDP fell 0.2% compared to the previous quarter, data from the Brazilian Institute of Geography and Statistics (IBGE) showed. This was the first quarterly decline in Brazil's economy since mid-2021, it came amid rising interest rates.

The volume of production in the processing sector in 2022 decreased by 1.4%, in construction the decline was 0.7%, in the communal sector 0.4%. According to IBGE, the agricultural sector recorded growth of 0.3%, and the services sector, which accounts for about 70% of the Brazilian economy, saw a rise of 0.2%.

Growth in 2022 was in the industry segment, which grew by 1.6%. Brazil's economy was held back by a 1.7% contraction in a major farming sector, driven largely by a drop in soybean production, Brazil's main agricultural crop.

According to IBGE, in 2022, consumer spending and government spending in Brazil increased by 0.3%, but investment in Brazilian business fell by 1.1%. State exports in the fourth quarter of 2022 grew by 3.5% compared to the previous quarter, while imports fell by 1.9%.

The biggest contributor to growth in 2022 was the services sector, which climbed 4.2%, followed by industry, which grew 1.6%. The economy was held back by a 1.7% contraction in the major farming sector, driven largely by a drop in soybean production, Brazil's main agricultural crop.

According to Reuters, the annual growth of Latin America's largest economy in 2022 was also facilitated by an increase in government spending by former President Jair Bolsonaro, who increased social spending ahead of the Brazilian presidential election.^[2]

Eighth in the world in PPP GDP after Indonesia

In August 2023, the World Bank updated its PPP GDP estimates for the world at the end of 2022.

Brazil's share of global PPP GDP fell to 2.3%

Main article: World Economy

GDP estimate - $1.9 trillion

GDP size forecast - $1.8 trillion

2021: GDP size - $1.65 trillion

2020: Brazil's GDP rises 316% in 20 years

2018: 2.18% of global GDP, 9th in the world

Financial system

Non-financial debt

2022: Aggregate non-financial debt

National debt

2023: State debt - 85% of GDP

2017: State debt - 83% of GDP

External debt

2019: Debt to China - $5bn

with the

Inflation

Under the influence of food and electricity prices, inflation in Brazil remains above the target level - reached 8.59% in mid-July 2021, compared with the targets of 3.75% in 2021 and 3.5% in 2022.

2022: Inflation in November - 6.5%

Currency

Digital real

Main article: Digital Real (DREX)

International reserves

2022: Yuan overtakes euro in Brazil reserves

The Chinese yuan overtook the euro to become the second most important currency in Brazil's foreign exchange reserves, according to a central bank report that was released on Friday. This reflects deepening economic ties with Brazil's largest trading partner.

Until 2018, the yuan was absent from Brazil's foreign exchange reserves and currently accounts for 5.37% of the Brazilian central bank's assets at the end of 2022, more than the euro's 4.74% share.

The U.S. dollar continues to dominate, accounting for 80.42% of Brazil's total foreign exchange reserves in 2022.

Key rate

In August 2021, the Brazilian Central Bank conducted a very aggressive interest rate increase and promised to quickly resume restrictive monetary policy to pacify inflation.

The bank raised its benchmark Selic rate by 100 bp to 5.25%.

Stock market

2021: IPO boom

Already by August 2021, the market IPO Brazil reached a record level.

Forty-two listings of Brazilian companies attracted more than 57 billion reais ($11 billion) in the first 7 months of 2021. This figure broke the previous full-year record of 53.6 billion reais in 2007, when 60 companies went public.

The latest offering by Raizen SA, a joint venture between Shell and Brazilian conglomerate Cosan SA, set a record for the year.

Labour market

2022: Proportion of workers aged 65 or over - above 10%

2015: More than 4.4% of workers work 60 or more hours a week

Unemployment

2020: Unemployment rate - 13.4%

Incomes and debts of the population

2023

Low household debt: 32% of GDP

Minimum wage - $232

2022: Share of citizens with a budget of less than $5.5 per day

Businessmen

Billionaires and millionaires in Brazil

2022: There are 413 thousand millionaires in the country

2021: The richest 1% of citizens account for 49.3% of the population's assets

2020: 7th in the world in the number of billionaires - 45

Foreign investment

2023: BlackRock Investment

Main article: BlackRock

Minerals

2022: Top 10 leading countries in the production of critical raw materials

2018: Mining leadership countries

Lithium mining

2022: 2,200 tonnes of lithium produced

2021: Lithium production - 1500 tonnes

Oil production

The new president of Brazil, Luiz Inácio Lula da Silva, in January 2023, canceled the decree of his predecessor Jair Bolsonaro on the privatization of eight large state-owned companies. Including he excluded from the list of state property to be sold, the oil and gas Petroleo Brasiliero SA (Petrobras).

Power

2020: Energy consumption per capita

and

Foreign trade

2024: Import take-off from Russia

2023

Russia for the first time entered the top five largest suppliers of goods to Brazil

At the end of 2023, Russia for the first time entered the top five largest exporters of goods to Brazil, increasing supplies to this country by 27% on an annualized basis. This is stated in the study, the results of which were published on January 14, 2024.

According to RIA Novosti, referring to data from the Brazilian statistical service, in 2023, imports of Russian goods to this South American country reached a record $10 billion. As a result, Russia rose to the fifth line in the list of leading exporters of products to Brazil.

Brazil purchased the most goods in 2023 from China - for a total of $53.2 billion. However, this is 12.5% less than a year earlier. China for the sixth year in a row (by 2023) remains the largest exporter of products to Brazil. The United States is in second place, but purchases of American goods on an annualized basis fell by a quarter, being at around $38 billion. Germany climbed to third place from fourth: it increased exports to Brazil by almost 3% in 2023 - to $13.1 billion. Argentina is in fourth position in the ranking with $12 billion, which is 8% less than in 2022.

In addition, the top ten largest exporters of goods to Brazil at the end of 2023 included India (a decrease of 22% compared to 2022; $6.9 billion), (Italy an increase of 5%; $5.9 billion), (Mexico an increase of 5%; $5.54 billion), (France an increase of 11%; $5.5 billion) and (Japan a decrease of 3%; $5.1 billion).

In general, as noted, Brazil during 2023 imported products worth $240.8 billion, which is 12% less on an annualized basis. At the same time, the volume of exports increased by 2%, reaching $339.7 billion. As a result, Brazil's trade surplus rose 1.6 times, reaching a record $98.9 billion.^[3]

Take-off of fuel and fertilizer imports from Russia

Brazil consumes Russian fuel more than ever before, intends to import a record amount of Russian fuel in August 2023.

According to the energy analytical company Kpler Ltd., imports of Russian petroleum products will grow by 25% compared to July and will amount to about 235 thousand barrels per day. That's far more than the US, which used to be Brazil's top overseas fuel supplier.

Brazil has become the second largest buyer of Russian diesel fuel in the world.

Brazil is economically very strongly integrated into the BRICS. The country buys fertilizers from Russia for agriculture and sells most of its agricultural products to China.

Brazil Imports from Russia in March 2023 rose 120% from the same month two years earlier.

2022

China is the main and largest export destination

Growth of trade with Russia to a record $9.8 billion

At the end of 2022, trade between Russia and Brazil amounted to a record 9.8 billion. dollars

2021: China's eighth-largest trading partner

2020

Transportation equipment - the main export item

The Impact of US President Trump's Administration's Trade Restrictions

2019: Computer Device Exports

Mechanical engineering

2019: 2.45 million cars produced

R&D

2020: R&D spending - $42.1 billion

Agriculture

2024: Sixth in the world for cocoa beans

2022: Average level of state support for agriculture

2021: Share of farmland - 34%

2019: Average use of pesticides in agriculture

Equestrian industry

Transport

2023: Sixth in the world in terms of the number of cars sold - 2.3 million units

Tourism

Ernst & Young study: The impact of the 2014 FIFA World Cup on the country's socio-economic development

Alcohol market

2022: 3rd in the world in terms of beer production

2021: Brazil is the 3rd country in the world in terms of beer consumption

2018: Minimum age to purchase alcoholic beverages

Pyrotechnics

Consumption

2022: Cut vegetarian share to 2.2%

Meat

2023: Poultry meat is the most consumed type of meat

Notes