Macroenvironment Brazil

Macro Environment Brazil

political environment

1.Form of Government Federal presidential constitutional republic

2. How stable is the Government?

-GDP growth rate 5.2% (2008 est.)

-0.6% (2009 est.)

7.5% (2010 est.)

-inflation 4.9% (2009 est.)

5% (2010 est.)

3. Effective and ethical

-preferential treatment of local Producers

(GDP by sector) services: 67.4%

industry: 26.8%

agriculture: 5.8%

-corruption perceptions index 2010

(10 is the best/ 0 the worst) 3.7

4. international relationships/ members of

Organisations

Unasul, WTO, Mercosul, G-20

-exports (July 2011) Worth $201.9 billion (2010 est.)

Main exports are transport equipment, machinery, steel, airplanes, paper, electric machinery, iron ore, soybeans, footwear, coffee, autos and automotive parts.

Main export partners: China 15.3%, United States 9.6%, Argentina 9.2%, Netherlands 5.1%, Germany 4.0%

-imports (July 2011) Worth $187.7 billion (2010 est.)

Main imports are machinery, electrical and transport equipment, chemical products, oil, automotive parts and electronics.

Main import partners: United States 15.0%, China 14.1%, Argentina 7.9%, Germany 6.9%, Japan 3.8%

-Currency exchange rates 1.00 Euro (€) = 2.50 real (BRL)

Brazil is a federal presidential constitutional republic that means that the country is subdivided by states with a republic form of government and has a separate executive and legislator with the President Dilma Rousseff acting as both Head of State and Government.

After a record GDP growth of 5.2% in 2008, the onset of the global financial crisis hit Brazil at the start of 2009. The Brazilian economy experienced recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up, so that the GDP growth rate sunk at -0.6%. However, Brazil was one of the first emerging markets to begin a recovery. The confidence of consumers and investors revived and GDP growth returned to a positive of 7.5% in 2010, boosted by an export recovery. This strong growth and Brazil's high

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