Brazil: From development aid

recipient to donor

Anup
Vanishree
 BRAZIL
• The Brazilian economy is the world's 8 largest economy by
nominal GDP and the seventh largest by purchasing power
parity

• Brazil has the largest population in Latin America and ranks

fifth in the world

• Brazil is a founding member of theUnited Nations,

the G20, CPLP, Latin Union, the Organization of Ibero-
American States, Mercosul and the Union of South American
Nations, and is one of the BRIC Countries.
 Economic History of Brazil
• A socioeconomic transformation took place rapidly after World
War II
• The share of the primary sector in the gross national product
declined from 28% in 1947 to 11% in 1992. In the year 1947-92
the contribution of industry to GNP increased from less than
20% to 39%

• The contribution of industry to GNP increased from less than

20% to 39%.

• Through the 1980s and 1990s, the Brazilian economy suffered

from rampant inflation that subdued economic growth. After
several failed economic initiatives created by the government, in
1994 thePlano Real was introduced.
Contd..
• Eighteenth-century gold rush

• The economy at independence, 1822

• Sweeping changes, 1930-45

1)Political & Economic changes
2)Industrialisation
• Import-substitution industrialization, 1945-64
1)Structural changes
2)BOP
3) Import-substitution industrialization
 Contd….
• Stagnation and spectacular growth, 1962-80
1) Stagnation, 1962-67
2) Spectacular growth, 1968-73
3)Growth with debt, 1974-80

• Stagnation, inflation, and crisis, 1981-93

1) 1981-84 period
2) 1985-89 period
3) 1990-93 period

• 1994-present (Post "Real Plan" economy)

 Summary….
GDP and GDP per capita
YEAR GDP  GDP  PER PER
(billion R) (billion US$) CAPITA  CAPITA 
(R$) (US$)

2008 2,900 1,650 15,240 8,594

2007 2,600 1,463 13,515 7,605
2006 2,466 1,116 12,995 6,092
2005 1,938 796 10,520 4,323
2004 1,895 604 10,433 3,326
2003 1,805 507 10,087 2,831
2002 1,796 459 10,179 2,604
2001 1,762 510 10,135 2,933
2000 1,739 602 10,152 3,516
 FOREIGN DIRECT INVESTMENT (FDI)
YEAR INWARD  OUTWARD  OVERALL 
(billion US$) (billion US$) (billion US$)

2008 45.100 20.020 65.150

2007 34.585 7.067 41.652
2006 18.822 28.202 47.024
2005 15.066 5.517 20.583
2004 18.146 9.807 27.953
2003 13.103 0.249 10.352
2002 16.601 2.482 19.083
TRADE BALANCE – GOODS – EXPORTS, IMPORTS AND OVERALL TRADE

YEAR EXPORTS  IMPORTS  OVERALL TRADE 

(US$bn) (US$bn) (US$bn)

2008 197.9 173.2 371.1

2007 160.6 120.6 281.2

2006 137.5 91.4 228.9

2005 118.3 73.6 191.9

2004 96.5 62.8 159.3

2003 73.1 48.3 119.4

2002 60.4 47.2 107.6

 FOREIGN RESERVES
YEAR END US$bn
2009 230.000 (until November)

2008 193.783
2007 180.334
2006 85.839
2005 53.799
2004 52.935
2003 49.296
2002 37.823
Foreign
Exchange