Economy of Brazil

The economy of Brazil is historically the largest in Latin America and the Southern Hemisphere in nominal terms. The Brazilian economy is the second largest in the Americas. It is an upper-middle income developing mixed economy. In 2024, according to the 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. In 2024, according to Forbes, Brazil was the 7th largest country in the world by number of billionaires. According to the 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.<br>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 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 the second quarter compared to the same period of the previous year. It officially exited the recession.

Top Sectors in Brazil

Agriculture in Brazil

Brazil is the world's largest producer of sugarcane, soy, coffee, orange, guaranÃ¡, aÃ§aÃ, and Brazil nut; is one of the top 5 producers of maize, papaya, tobacco, pineapple, banana, cotton, beans, coconut, watermelon, and lemon; is one of the top 10 world producers of cocoa, cashew, avocado, tangerine, persimmon, mango, guava, rice, sorghum, and tomato; and is one of the top 15 world producers of grape, apple, melon, peanut, fig, peach, onion, palm oil, and natural rubber.

Mining in Brazil

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.

Industry in Brazil

Industrial production in Brazil encompasses a diverse range of sectors, including textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, armaments, motor vehicles and parts, and other machinery and equipment. The industrial growth rate was recorded at 1.1% in 2018. The labor force engaged in the industrial sector represents 13.3% of the total labor force, contributing approximately 22.2% to the country's total GDP.<br>Brazil has the second-largest manufacturing sector in the Americas, accounting for 28.5 percent of GDP. Its industries span 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, with a significant portion sourced from U.S. firms.

Tourism in Brazil

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.

Brazil - Key Economic Indicators

Exports and Imports

Brazil's total exports amounted to $255 billion in 2023, with primary products such as soybeans, iron ore, crude oil, and sugar being the main export commodities. Imports totaled $230 billion, with machinery, electrical machinery, mineral fuels, and oil accounting for the majority. China, the United States, and Argentina are among Brazil's top trading partners.

Infrastructure

Brazil has made significant investments in infrastructure development, particularly in roads and transportation. The total length of roads in Brazil reached 1.7 million kilometers in 2023, including highways, paved roads, and rural roads. Major projects include the construction and expansion of highways, bridges, ports, and airports aimed at improving connectivity and facilitating economic growth.

Balance of Trade

Brazil experienced a trade surplus of $25 billion in 2023, indicating that exports exceeded imports by this amount. This surplus represents approximately 9% of total trade volume. A positive balance of trade contributes to economic growth and strengthens the country's external position.

Fiscal Policy

Brazil's fiscal policy involves government spending and taxation measures aimed at promoting economic growth and fiscal sustainability. Government spending accounted for approximately 40% of GDP in 2023, with investments directed towards healthcare, education, social welfare, and infrastructure projects. Tax revenue amounted to 33% of GDP, with a value-added tax (VAT) rate of 17% and a corporate tax rate of 15%.

Monetary Policy

The Central Bank of Brazil implements monetary policy to maintain price stability and support economic growth. In 2023, the central bank kept the benchmark interest rate at 4.25% to control inflation and stimulate lending. Additionally, the central bank manages foreign exchange reserves and conducts open market operations to ensure liquidity in the banking system and stabilize the currency.

Trade Agreements

Brazil is a signatory to numerous trade agreements aimed at promoting international trade and investment. As a member of Mercosur (Southern Common Market), Brazil benefits from preferential trade arrangements with Argentina, Paraguay, Uruguay, and other member countries. Brazil also has bilateral trade agreements with countries such as China, the United States, and the European Union, enhancing market access and promoting trade diversification.

Environmental Regulations

Brazil has enacted environmental regulations to mitigate pollution, conserve natural resources, and promote sustainable development. The government imposes strict regulations on industries, forestry, and agriculture to minimize environmental degradation. Environmental impact assessments are required for major projects, and laws protect indigenous territories and biodiversity-rich areas such as the Amazon rainforest. Compliance with environmental regulations is essential for sustainable economic development and international cooperation.

Tax System in Brazil

Capital Gains Tax: Brazil imposes a capital gains tax on profits earned from the sale of assets such as stocks, bonds, real estate, and other investments. The tax rate varies depending on the type of asset and the duration of ownership. As of 2023, the standard capital gains tax rate is 15%.
Corporate Tax Rate: The corporate tax rate in Brazil is 34%, applied to the profits of resident and non-resident companies operating within the country. Certain industries may qualify for preferential tax rates or incentives to encourage investment and economic development.
Sales Tax: Brazil applies a value-added tax (VAT) known as the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) on the sale of goods and services. The ICMS rates vary by state and product, ranging from 7% to 25%.
Property Tax: Brazil imposes a property tax known as the Imposto sobre a Propriedade Predial e Territorial Urbana (IPTU) on urban real estate properties. The tax rate is determined by the municipality and is based on the assessed value of the property.
Payroll Tax: Brazil levies a payroll tax to fund social security programs and other social benefits. Employers are required to withhold payroll taxes from employees' wages and salaries. The payroll tax rates vary depending on the type of employment and income level.
Tax Deductions and Credits: Brazil offers various tax deductions, exemptions, and credits to reduce the tax liability of individuals and businesses. These may include deductions for education expenses, healthcare costs, charitable donations, and investment incentives for certain industries.
Tax Compliance: Tax compliance in Brazil is managed by the Federal Revenue Service (Receita Federal) and state revenue agencies. Efforts to improve tax compliance include electronic filing systems, tax audits, and penalties for non-compliance. However, tax evasion and informal economic activities remain challenges for the tax authorities.
Tax Burden: The tax burden in Brazil varies depending on individual income levels, business activities, and economic conditions. The overall tax burden includes direct and indirect taxes paid by individuals and businesses to the federal, state, and municipal governments. The tax burden is regularly assessed to ensure that it remains equitable and conducive to economic growth.

16348 Live Notices for Brazil ....

Showing 1 to 20

* Electronic Bidding * The Object Of This Bidding Is The Acquisition Of Custom Furniture For The Nephrology Center "Sakae Kamitani" - Hemodialysis Clinic, In Accordance With The Terms Of Reference, In Response To The Request Of The Health Management Of The Municipality Of Naviraí/Ms. Purchase Order Nº 232/2024.

Brazil

04 Jul 2024

26 Jul 2024