Brazil Economic Outlook-
The current exchange rate with the U.S. Dollar plus the depressed market makes real estate in Brazil a steal. Apartments can still be found for less than $50,000 in some places, even though prices are rising, especially along a few popular beach areas.

Brazil’s financial crisis was in 1999, when its currency was devalued and combined with loans from the International Monetary Fund. Exports from Brazil have become more competitive globally with the devaluation.

Brazil is the largest country in South America. In the second quarter of 2004, the economy grew at a rate of 5.7% compared to the previous year. More growth is predicted, 3.5% in 2004 and 2.8% in 2005 according to The Economist.

  Rio de Janeiro

Natural resources are abundant in Brazil; commodities include soybeans, sugar, tobacco, oranges, coffee, cocoa, beef, and wood, mineral and metal products. With these types of commodities, Brazil has a competitive advantage. Other areas contributing to the countries growth and advantage are the industries of mining, agriculture, manufacturing and service.

However, to balance out the positive aspects, it is important to recognize that unemployment is a major problem. In 2004 unemployment was estimated at 12% and for 2005, 11.6%. Brazil’s external debt remains high compared to the countries export trade.

Brazil Quick Economic Indicators-

GDP (purchasing power parity): $2.03 trillion (2008 est.)

GDP (official exchange rate):      $1.665 trillion (2008 est.)

GDP - real growth rate:               5.2% (2008 est.)
   
Labor force:                                 100.9 million (2008 est.)

Labor force - by occupation:       agriculture: 20%
                                                    industry: 14%
                                                    services: 66% (2003 est.)

Unemployment rate:                   8% (2008 est.)

Exports:                                      $200 billion f.o.b. (2008 est.)

Exports - commodities:              transport equipment, iron ore, soybeans, footwear, coffee, autos

Exports - partners:                     US 16.1%, Argentina 9.2%, China 6.8%, Netherlands 5.6%, Germany 4.6% (2007)

Imports:                                     $176 billion f.o.b. (2008 est.)

Imports - commodities:             machinery, electrical and transport equipment, chemical products, oil, automotive parts, electronics

Imports - partners:                    US 15.7%, China 10.5%, Argentina 8.6%, Germany 7.2%, Nigeria 4.4% (2007)

Debt - external:                         $236.6 billion (31 December 2008 est.)

Exchange rates:                         reals (BRL) per US dollar -

                                                   1.8644 (2008 est.)

                                                   1.85 (2007 est.)

                                                   2.1761 (2006)

                                                   2.4344 (2005)                                  

                                                   2.9251 (2004)

                                                   3.0771 (2003)
 

source: c.i.a. world fact book