Fact Sheet ELANBiz: Country Profile Brazil 1 Prepared by ELANBIZ Trade Expert in Brazil. Updated to February, 2018 For additional information, use our service Ask the Expert Basic Information Official Name: Federative Republic of Brazil Official Language: Portuguese Currency: since 1994, Brazilian Real (R$) Area: 8.514.876 km2 Population: 207,6 million 2 Capital: Brasília Main cities: São Paulo, Rio de Janeiro, Salvador, Brasília, Belo Horizonte, Curitiba, Porto Alegre Economic Indicators GPD: US$ 1.796 trillion (year of 2016) 3 GPD per capita: US$ 8.840 (year of 2016) 4 Central Government Debt / GDP: US$ 2.774.107 Million - 43,8 % (November 2016)5 Foreign direct investment: US$ 78,92 billion (2016), 4,38% of GDP 6 Imports: US$ 137,552,002,000 (2016) 7 Exports: US$ 185,235,399,000 (2016) 8 Ranking Doing Business of World Bank : ranks 123 1 Content information provided in this document, is of general nature only. For more detailed information, events and commercial trade offers as well as commercial business contacts, please contact the Comercial Offices on the member States, the European trade organizations and bilateral chambers of commerce. 2 Source: IBGE: http://www.ibge.gov.br/ 3 Source: World Bank: http://www.worldbank.org/pt/country/brazil 4 Source: Central Bank of Brazil: http://www.bcb.gov.br/ 5 Source: Central Bank of Brazil: http://www.bcb.gov.br/ 6 Source: TradeMap: http://www.trademap.org/ 7 Source: TradeMap: http://www.trademap.org/ 8 Source: Spanish Institute for Foreign Trade 1
Annual GDP Growth Rate 2012 1,8% 2013 2,7% 2014 0,1% 2015-3,8% 2016-4,0% Source: World Bank Consumer price index 2012 7,8% 2013 5,6% 2014 6,8% 2015 10,5% 2016 6,2% Source: FGV (Fundação Getúlio Vargas) Current Account Balance % GDP 2012 2,4% 2013 3,6% 2014 4,3% 2015 3,3% 2016* 1,7*% *until May 2016. Source: World Bank Purchase exchange rate 2012 2,38 2013 2,67 2014 3,21 2015 3,93 2016 3,60 Source: European Central Bank Eurosystem http://ec.europa.eu/budget/contracts_grants /info_contracts/inforeuro/index_en.cfm Economic Profile Brazil is the ninth largest economy, with a gross domestic product (GDP) of US$ 1.7 trillion in 2016 9, representing almost 50% of the Latin American economy, ranking seventh in the world on foreign investment attraction 10. With a population of over 207 million people, Brazil is among the world's largest markets in sectors such as cosmetics, computer and information technology, energy, aviation, automotive, telecommunications, medical equipment and pharmaceuticals. Brazil is the fifth largest population country, making it one of the largest market consumers in the world, offering good business opportunities in an environment of macroeconomic and social stability. The scenario of economic stability and future forecast allowed Brazil to conquer the investment grade status, according to the assessment of major international credit rating agencies. The institutional environment in Brazil ensures security for investors, which can also account to a modern and efficient financial system. The profound transformation that Brazil has experienced over the last 20 years, turned it into a preferred country destination for national and international investors, attracting more and 9 According to World Bank classification to 2015 10 http://datos.bancomundial.org/indicador/bx.klt.dinv.cd.wd?year_high_desc=true 2
more new entrepreneurs and encouraging business expansion. As almost all major multinationals from industrialized countries are already established in Brazil, the principal interest of the country for the upcoming years is to attract investment from small and medium-sized foreign companies. Besides being one of the largest consumer markets in the world, Brazil offers extremely attractive conditions for startups: competitive labour costs, strong agribusiness industry, agricultural and mining commodities supply, low production costs, consolidated industrial park, controlled inflation, non-discriminatory rules, transparent treatment of foreign investment and receptiveness to partner. Ease of doing business Brazil ranks number 123 in the ranking "Doing Business" World Bank 2016. The following chart shows the ranking obtained in each of the analyzed scope. Scope Ranking Starting a Business 175 Dealing with Construction Permits 172 Getting Electricity 47 Registering Property 128 Getting Credit 101 Protecting Minority Investors 31 Paying Taxes 181 Trading Across Borders 149 Enforcing contracts 37 Resolving Insolvency 67 Source: World Bank, http://www.doingbusiness.org/rankings 2016 Concerning to informations from ELANBIZ platform (www.elanbiz.org), Brasil is also a country with lots of interests from European Companies. From more than 46000 users from the platform, Brasil Achieved more than 12000 downloaded factsheets at the 2017 end. Foreign trade and investment The European Union was the second largest destination market for Brazil's exports in 2016 (24.27%) of total exports, after Asia (53.58%) and ahead of Latin America and the Caribbean (27.15%). Brazil exported to the EU to the value of USD 33,384,645 thousand. 3
ALL 137.552.003 100% ASIA 73.703.953 53,58% EUROPEAN UNION 33.384.645 24,27% LATIN AMERICA AND THE CARIBBEAN 37.348.508 27,15% Currency: USD. Source: TradeMap. Main European export destinations were the Netherlands (5.3%), Germany (2.7%), Italy (1.7%), Belgium (1.6%) and Spain (1.6%). Main export products (79.2%) of the total exported in 2016 to the European Union were Minerals (9.18%), Food derivatives (8.88%), Coffee and herbs (8.21%), Seeds and Oleaginous fruits (6.08%), Machinery and equipment (6.07%), Paper and pulp (5.48%), Cast iron, iron and steel (5.32%). BRAZIL MAIN CUSTOMERS 26% 51% 23% ASIA UNIÓN EUROPEA AMERICA LATINA Y CARIBE With regard to imports by blocks, in 2016, Brazil's main partner was Asia (34.33%), followed by the European Union (22.59%) and Latin America and the Caribbean (16.60%). The EU exported USD 31,075,469 thousand to Brazil. The main supplier countries in the EU were Germany 4
(6.1%), Italy (2.7%), France (2.6%), Spain (2%) and United Kingdom (1.6%). The main products imported by Brazil from the EU were machinery and equipment (21.69%), pharmaceuticals (10.88%), chemicals (7.75%), electrical equipment and machinery (7.55%), Automobiles (7.49%), Plastic and its manufactures (4.69%). ALL 137.552.003 ASIA 47.214.889 EUROPEAN UNION 31.075.469 LATIN AMERICA AND THE 22.833.756 CARIBBEAN OTHERS 59.261.645 Currency: USD. Source: TradeMap. 100% 34,33% 22,59% 16,60% 26,48% BRAZIL MAIN PROVIDERS ASIA OTHERS 26% 34% LATIN AMERICA AND THE CARIBBEAN 16% ASIA UNIÓN EUROPEA EUROPEAN UNION 22% AMERICA LATINA Y CARIBE OTROS Major domestic markets Brazil is a decentralized country, its capital Brasilia, concentrates almost all central government institutions. However, the main industrial center is São Paulo, accounting for more than 30% of the national GDP, where the headquarters of major companies are established. Some states, over the past decade, have experienced a significant development, becoming a center of attention for business opportunities. The more developed states are: São Paulo, Minas Gerais, Rio de Janeiro, Parana and Rio Grande do Sul, representing all together almost 65% of Brazil s GDP. Infraestructure 5
Transport logistics distribution in Brazil has a strong concentration in the road infraestructure, mainly concentrated in the Center-South of the country, especially in the state of São Paulo. According to the National Confederation of Transport (CNT), 61.1% of all transported cargo in Brazil was by road (Brazil has 1,355,000 km of roads); 20.7% was by railway (Brazil has 29,706 km of railways), 13.6% by navigable rivers (Brazil has 13,000 km of waterways), river and sea port terminals (Brazil has 37 public ports); 4.2% by river and sea ducts (for oil and gas purposes) and only 0.4% was transported by air (Brazil has 2,498 airports, ranking number 2 in the world). This Infocard has been prepared by the expert in Brazil. If you want to get personalized information send us a question through our service Ask the Expert. It is free and you will receive the answer within a maximum of 5 working days! Disclaimer The positions expressed are those of the authors and do not necessarily reflect the official opinion of the European Union. Neither the European Union nor any person acting on behalf of the European Union is responsible for the use, which might be made of this information. Neither the European Union nor the ElanBiz consortium members are responsible or may be held accountable for any loss suffered as a result of reliance upon the content of this Fact Sheet 6