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Brazil Country Profile
Brazil is larger than Australia and only slightly smaller than the USA with a land area of approximately 8.5 million square kilometers and a population of 190 million. It is a federal republic with 26 states and a capital district of Brasilia. Major cities include Sao Paulo, Rio de Janeiro, Belo Horizonte and Salvador.
Brazil is South America's largest economy with a GDP of over US$1 trillion (the world's tenth largest economy) and GDP per capita of US$8,458. There has been steady economic growth of 2-5% per annum under current President ‘Lula’ da Silva, who took office in 2002. Since then, Lula’s government have stabilized the economy and has made good progress in developing the agricultural, mining and manufacturing sectors. This has resulted in Brazil’s increasing global influence.
Brazil’s current account surplus hit a record level of US$3.04 billion in July 2006 illustrating continued strong growth in exports. Direct foreign investment has been estimated at US$193.8 billion for 2007. In May 2008, Standard & Poor raised their long term foreign currency sovereign credit rating for Brazil to investment grade (from BB+ to BBB-). The improved rating was based on easing debt and improving growth prospects.
Brazil is largely self sufficient in terms of energy, generating over 80% of its electricity from non-polluting renewable hydro-electric power. The country is self sufficient in fuel and is expected to become a major oil exporter in the next 5 years. Brazil is self sufficient in food with agricultural commodities representing the major export.
Brazil has vast mineral resources including iron ore (for which it is the world largest producer), copper, bauxite, gold, manganese, nickel, phosphates, platinum, tin, uranium, gas and petroleum. The Brazilian mining giant “Vale”, is the world’s second largest miner and dominates the world class Brazilian mineral provinces of the Iron Quadrangle and the Carajas. Vale is committed to significant investments in infrastructure and mine developments, it is therefore expected that the Carajas will become Brazil’s premier mineral producing area within 10 years.
