Conjuncture of the Brazilian economy
The Brazilian economy is stable and is performing
well. The country risk has significantly decreased since 2002 and has
reached historical levels. The economy has been stabilized and is now
expected to grow by 3% to 4% in the next decade. According to current
expectations, Brazil will reach the "investment grade" in the
next 3 to 5 years.
Inflation is decreasing and is now under control
The economic policies implemented since the launch of the "Real Plan" introduced in 1994 have been successful in combating the Inflation which is now controlled. According to the current target of the Brazilian government, inflation (measured by IPCA) should reach the level of 4.5% in 2006.
Inflation (IPCA Index) - Sources: FGV (2002-2005),
IPEA (2006)
The Brazilian economy is growing and represented USD 797 billions in 2005
Gross Domestic Product - GDP (in USD millions) -
Sources: FGV (2002-2005), IPEA (2006)
The Brazilian economy has known a significant growth in 2004 and 2005 and will continue growing in the next years, according to analysts.
Real Variation of Gross Domestic Product (GDP) in
% - Sources: FGV (2002-2005), IPEA (2006) 
Brazilian exports increased continuously since 2002
Exports FOB (in USD millions) - Sources: FGV (2002-2005), IPEA (2006)
Trade Balance is performing well and had a significant surplus in 2004 and 2005
Trade Balance (in USD millions) - Sources: FGV (2002-2005),
IPEA (2006)
Public debt decreased in % of GDP since 2003
The Brazilian government recently liquidated its external debt indexed to USD.
Public debt (in % of GDP) - Sources: FGV (2002-2005),
IPEA (2006)
Utilization of industrial capacity is increasing since 2003
Utilization of industrial capacity - Sources: FGV
(2002-2005), IPEA (2006)
Brazilian unemployment unemployment is decreasing since 2003
Brazilian Unemployment - Sources: FGV (2002-2005), IPEA (2006)
© César Ramos, "The Brazilian economy", www.cesarramos.com, April 2006, São Paulo, Brazil.