Brazil has the highest degree of industrialization of all Latin American countries and is (2017) the eighth largest economy in the world. In connection with the diverse and abundant mineral resources, Brazil can be described as a typical emerging country.
The economic situation in the 1980s was characterized by increasing unemployment, rapidly increasing inflation rates, and strongly fluctuating growth rates of the gross domestic product (GDP) and growing budget deficits. Foreign debt had risen sharply, and payment obligations from rescheduling agreements could not be met in some cases. Since 1990, and increasingly since the mid-1990s, extensive measures have been taken to stabilize (“Plano Real”) economic development (currency reforms, tax increases, subsidy reductions, reduction of foreign debts) and privatizations, i.e. the abolition or relaxation of the state monopoly in certain decisive areas Economic (steel, fertilizer, petrochemical, mining) and infrastructure sectors (railways, telecommunications, water management) as well as in the energy and banking sectors initiated. In connection with the economic recession in Asia (1997/98) and the international financial crisis (2008/09), economic growth was temporarily impaired, but despite the global downturn, the country’s internal energy crisis, a depreciating real and a high interest rate policy in the Stabilize the following time in each case. The country has benefited greatly from this in recent yearslarge domestic market and brisk foreign investment. U mfangreiche investments were made despite mass protests related to the alignment of the 2014 World Cup and the 2016 Olympic Games and the development of the 2007/08 discovered large oil and gas deposits off the southeast coast.
Annual economic growth in Brazil averaged 3.7% in 2003-10, but then fell to 1.8% (2012) and 1.0% (2017) due to low raw material prices on the world market. The unemployment rate (2017: 12.9%) remains relatively high; the inflation rate is 3.4%. The low domestic investment rate, especially in the industrial sector, hinders further economic development despite the large domestic market.
Foreign trade: imports amount to US $ 150.7 billion (2017) (2009: US $ 127.7 billion); exports amount to (2017) US $ 217.7 billion (2009: US $ 153.0 billion). The main import goods are crude oil (14.3%), electronics (13.7%) and machines (11.5%); Main export products: agricultural products (18.3%), iron ore and other raw materials (10.3%) and crude oil (9.7%). The most important trading partners are China, the USA, Argentina, Germany and the Netherlands.
Brazil has many natural resources of which only a small part has been developed; Above all, rich deposits have been discovered in the Amazon basin. The vastness of the country and the still inadequate traffic development prevent rapid use. The development extends to more than 60 mineral raw materials, especially tin ore, iron ore, gold, manganese ore, bauxite, chromium, diamonds, crude oil, natural gas and limestone. oil ranks first in terms of value in mining. The centers of domestic oil production are the Bay of Bahia, Tucano and Carmópolis and above all the offshore areas off Rio de Janeiro. The 2007/08 newly discovered oil reserves off the southeast coast are estimated at around 100 billion barrels and would make Brazil a leading oil producer. However, the so-called “Pré-Sal” deposits lie at a depth of 6,000–7,000 m and are very difficult to develop.
Brazil is the third largest producer of iron ore in the world. The iron ore deposits are among the largest on earth. They are mainly located in the states of Minas Gerais, Pará and Mato Grosso; the largest known deposits so far are in the Serra dos Carajás (Pará), which also has copper ore deposits of 1.2 billion t. bauxite is mined in the state of Minas Gerais and for several years on the Rio Trombetas, a northern tributary of the Amazon; the Trombetas deposit alone is over 5 billion t. 1984 began near the city of São Luís (Maranhão) with the production of aluminum oxide and aluminum ingots; In 1995, a further aluminum plant was put into operation in Barcarena (Pará). The gold mining takes place mainly in Mato Grosso, Pará and Minas Gerais. Intensive exploration led to the discovery of extensive uranium ore deposits. Brazil also has significant deposits of chromium, lead, nickel, titanium, tungsten, beryl, zirconium, thorium (from monazite sands on the east coast), rock crystal, graphite, mica and rock phosphates. On the other hand, there is a lack of larger hard coal deposits, so that Brazil has to import more than 90% of its consumption.
The service sector has grown considerably over the last few decades and reached (2016) a share of the GDP of 73.3%; around 69% of all employees work in this sector.
Tourism: The share of tourism in GDP is relatively insignificant at less than 1%. The multicultural society as well as the diverse natural areas with the species-rich fauna and flora of the rainforest and the numerous beaches make Brazil a popular holiday destination. On average over the last few years, over 5 million guests visit the country every year. The majority of visitors come from Argentina (around 27%) and the USA (10%); almost 30% from Europe. The main objectives include, among others. Rio de Janeiro (with the Carnival), the capital Brasília, São Paulo, Salvador and the beaches of Bahia, the Iguaçu Falls, Amazonia and the Pantanal. Visit clothingexpress.org for Brazil as a tourism country.