Brazil: Good export performance

Activity is showing signs of recovery, following a slowing in the second quarter. Private consumption continues to be strong, and investment is likely to bounce back. The trade and current account surpluses remain robust on the back of sustained good export performance. Financial conditions have been benign, even during the pre-election period, buttressed by a continued improvement in external vulnerability indicators.
The policy mix is becoming more accommodating. Sustained disinflation and the lacklustre GDP readings have prompted continued monetary easing. The exchange rate was under some pressure in May-June but has stabilised since then. Fiscal policy is on track, with the end-period targets expected to be met despite the ratcheting-up of current expenditure, especially on pensions.
Population (000s), 2005184 184
Area (000 sq km)8 515
CurrencyRéal
GDP (Billion USD), 2005796
Life expectancy at birth (Women, Men), 2005 75.8, 68.2
Total labour force (000s), 200596 032
Government typeFederal Republic
Indicators% change unless otherwise indicated
200620072008
Real GDP growth3.13.84.0
Inflation (CPI)3.03.8.36
Fiscal balance
(% of GDP)
-2.5-1.5-1.0
Primary fiscal balance (% of GDP)4.34.34.3
Current account balance (% GDP)1.60.90.4
Source: OECD©OECD Observer No. 258/259, December 2006


Economic data

GDP growth: +0.2% Q4 2019
Consumer price inflation: 1.7% March 2020
Trade (G20): -0.1% exp, -1.3% imp, Q4 2019
Unemployment: 5.6% March 2020
Sharp drop in OECD leading indicators point to darker outlook: Last update: 14 May 2020

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