Economy

Main article: Economy of Brazil

See also: Brazilian real

Quotes panel of BM&F Bovespa, in So Paulo, the country's stock exchange.

A KC-390 military transport aircraft, developed by Brazilian company Embraer, the third largest producer of civil
aircraft, after Airbus and Boeing.[223]

Brazil is the largest national economy in Latin America, the world's ninth largest economy and
the eighth largest in purchasing power parity (PPP) according to the 2017 estimates. Brazil has
a mixed economywith abundant natural resources. After rapid growth in preceding decades, the
country entered an ongoing recession in 2014 amid a political corruption scandal and nationwide
protests.
Its GDP (PPP) per capita was $15,048 in 2016[224] putting Brazil in the 77th position according to IMF
data. Active in agricultural, mining, manufacturing and service sectors Brazil has a labor force of
over a 107 million (ranking 6th worldwide) and unemployment of 6.2% (ranking 64th
worldwide).[225] The country has been expanding its presence in international financial
and commodities markets, and is one of a group of four emerging economies called the BRIC
countries.[226] Brazil has been the world's largest producer of coffee for the last 150 years.[24]

Combine harvester in a rice plantation in Santa Catarina. Brazil is the third largest exporter of agricultural
products in the world.[227]
Central Bank of Brazil in Braslia

Brazil has become the fourth largest car market in the world.[228]Major export products
include aircraft, electrical equipment, automobiles, ethanol, textiles, footwear, iron
ore, steel, coffee, orange juice, soybeans and corned beef.[229] In total, Brazil ranks 23rd worldwide
in value of exports.
Brazil pegged its currency, the real, to the U.S. dollar in 1994. However, after the East Asian
financial crisis, the Russian default in 1998[230]and the series of adverse financial events that followed
it, the Central Bank of Brazil temporarily changed its monetary policy to a managed-float[231] scheme
while undergoing a currency crisis, until definitively changing the exchange regime to free-float in
January 1999.[232]
Brazil received an International Monetary Fund rescue package in mid-2002 of $30.4 billion,[233] then
a record sum. Brazil's central bank paid back the IMF loan in 2005, although it was not due to be
repaid until 2006.[234] One of the issues the Central Bank of Brazil recently dealt with was an excess
of speculative short-term capital inflows to the country, which may have contributed to a fall in the
value of the U.S. dollar against the real during that period.[235] Nonetheless, foreign direct
investment (FDI), related to long-term, less speculative investment in production, is estimated to be
$193.8 billion for 2007.[236] Inflation monitoring and control currently plays a major part in the Central
bank's role of setting out short-term interest rates as a monetary policy measure.[237]
Between 1993 and 2010, 7012 mergers & acquisitions with a total known value of $707 billion with
the involvement of Brazilian firms have been announced.[238] The year 2010 was a new record in
terms of value with 115 billion USD of transactions. The largest transaction with involvement of
Brazilian companies has been: Cia. Vale do Rio Doce acquired Inco in a tender offer valued at
US$18.9 billion.
Corruption costs Brazil almost $41 billion a year alone, with 69.9% of the country's firms identifying
the issue as a major constraint in successfully penetrating the global market.[239] Local government
corruption is so prevalent that voters perceive it as a problem only if it surpasses certain levels, and
only if a local media e.g. a radio station is present to divulge the findings of corruption
charges.[240] Initiatives, like this exposure, strengthen awareness which is indicated by the
Transparency International's Corruption Perceptions Index; ranking Brazil 69th out of 178 countries
in 2012.[241] The purchasing power in Brazil is eroded by the so-called Brazil cost.[242]
Components and energy
Main articles: Agriculture in Brazil, Mining in Brazil, Industry in Brazil, and Energy policy of Brazil

P-51, an oil platform of Petrobras.

Brazil's diversified economy includes agriculture, industry, and a wide range of

services.[243] Agriculture and allied sectors like forestry, logging and fishing accounted for 5.1% of
the gross domestic product in 2007.[244] Brazil is one of the largest producer of oranges, coffee, sugar
cane, cassava and sisal, soybeans and papayas.[245]
The industry from automobiles, steel and petrochemicals to computers, aircraft and consumer
durables accounted for 30.8% of the gross domestic product.[244] Industry is highly concentrated in
metropolitan So Paulo, Rio de Janeiro, Campinas, Porto Alegre, and Belo Horizonte.[246]
Brazil is the world's tenth largest energy consumer with much of its energy coming from renewable
sources, particularly hydroelectricity and ethanol; the Itaipu Dam is the world's largest hydroelectric
plant by energy generation.[247] The first car with an ethanol engine was produced in 1978 and the
first airplane engine running on ethanol in 2005.[248] Recent oil discoveries in the Pre-salt layer have
opened the door for a large increase in oil production.[249] The governmental agencies responsible for
the energy policy are the Ministry of Mines and Energy, the National Council for Energy Policy,
the National Agency of Petroleum, Natural Gas and Biofuels, and the National Agency of
Electricity.[250]

The Itaipu Dam on the Paran River, located on the border between Brazil and Paraguay, is the second largest
of the world (the first is the Three Gorges Dam, in China). Approximately 75% of the Brazilian energy matrix,
one of the cleanest in the world, comes from hydropower.

Tourism
Main article: Tourism in Brazil
Fernando de Noronha Archipelago, Pernambuco.

Iguazu Falls, Paran, in Brazil-Argentina border.

Tourism in Brazil is a growing sector and key to the economy of several regions of the country. The
country had 6.36 million visitors in 2015, ranking in terms of the international tourist arrivals as the
main destination in South America and second in Latin America after Mexico.[251]Revenues from
international tourists reached US$6 billion in 2010, showing a recovery from the 20082009
economic crisis.[252] Historical records of 5.4 million visitors and US$6.8 billion in receipts were
reached in 2011.[253][254]
Natural areas are its most popular tourism product, a combination
of ecotourism with leisure and recreation, mainly sun and beach, and adventure travel, as well
as cultural tourism. Among the most popular destinations are the Amazon
Rainforest, beaches and dunes in the Northeast Region, the Pantanal in the Center-West Region,
beaches at Rio de Janeiro and Santa Catarina, cultural tourism in Minas Geraisand business trips
to So Paulo city.[255]
In terms of the 2015 Travel and Tourism Competitiveness Index (TTCI), which is a measurement of
the factors that make it attractive to develop business in the travel and tourism industry of individual
countries, Brazil ranked in the 28st place at the world's level, third in the Americas,
after Canada and United States.[256][257]
Brazil's main competitive advantages are its natural resources, which ranked 1st on this criteria out
of all countries considered, and ranked 23rd for its cultural resources, due to its many World
Heritage sites. The TTCI report notes Brazil's main weaknesses: its ground transport infrastructure
remains underdeveloped (ranked 116th), with the quality of roads ranking in 105th place; and the
country continues to suffer from a lack of price competitiveness (ranked 114th), due in part to high
ticket taxes and airport charges, as well as high prices and high taxation. Safety and security have
improved significantly: 75th in 2011, up from 128th in 2008.[257]
According to the World Tourism Organization (WTO), international travel to Brazil accelerated in
2000, particularly during 2004 and 2005. However, in 2006 a slow-down took place, and
international arrivals had almost no growth in 200708.[258][259][260]
Bonito, Mato Grosso do Sul. The rivers in the region are known for their crystal clear waters.

The city of Rio de Janeiro is featured in tourism in Brazil.

In spite of this trend, revenues from international tourism continued to rise, from USD 4 billion in
2005 to 5 billion in 2007, despite 330 000 fewer arrivals. This favorable trend is the result of the
strong devaluation of the US dollar against the Brazilian Real, which began in 2004, but which
makes Brazil a more expensive international destination.[261] This trend changed in 2009, when both
visitors and revenues fell as a result of the Great Recession of 200809.[262] By 2010, the industry
had recovered, and arrivals grew above 2006 levels to 5.2 million international visitors, and receipts
from these visitors reached USD 6 billion.[252] In 2011 the historical record was reached with 5.4
million visitors and US$6.8 billion in receipts.[253][254]
Despite continuing record-breaking international tourism revenues, the number of Brazilian tourists
travelling overseas has been growing steadily since 2003, resulting in a net negative foreign
exchange balance, as more money is spent abroad by Brazilians than comes in as receipts from
international tourists visiting Brazil. Tourism expenditures abroad grew from USD 5.8 billion in 2006,
to USD 8.2 billion in 2007, a 42% increase, representing a net deficit of USD 3.3 billion in 2007, as
compared to USD 1.5 billion in 2006, a 125% increase from the previous year.[263] This trend is
caused by Brazilians taking advantage of the stronger Real to travel and making relatively cheaper
expenditures abroad.[263] Brazilians traveling overseas in 2006 represented 4% of the country's
population.[264]
In 2005, tourism contributed with 3.2% of the country's revenues from exports of goods and services,
and represented 7% of direct and indirect employment in the Brazilian economy.[265] In 2006 direct
employment in the sector reached 1.9 million people.[266] Domestic tourism is a fundamental market
segment for the industry, as 51 million people traveled throughout the country in 2005,[267] and direct
revenues from Brazilian tourists reached USD 22 billion,[268] 5.6 times more receipts than
international tourists in 2005.
In 2005, Rio de Janeiro, Foz do Iguau, So Paulo, Florianpolis and Salvador were the most visited
cities by international tourists for leisure trips. The most popular destinations for business trips
were So Paulo, Rio de Janeiro and Porto Alegre.[269] In 2006 Rio de Janeiro and Fortaleza were the
most popular destinations for business trips.