Brazil has a developing mixed economy that is the twelfth largest in the world by nominal gross domestic product (GDP) and eighth largest by purchasing power parity in 2020. According to International Monetary Fund (IMF) estimates, Brazil’s 2020 nominal GDP was R$7.348 trillion or US$1.363 trillion. Brazil is the 83rd country in the world in GDP per capita, with a value of US$6,450 per inhabitant. The country has an estimated at $21.8 trillion worth ofnatural resources which includes vast amounts of gold, uranium, iron, and timber.
The following tables and chart will tell the change details in last 5-10 years:
Brazil Distribution of workforce from the last 5 years:
Brazil Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Brazil GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Brazil’s economy. It employs almost 9.12% of the total workforce and contributed almost 4.44% in GDP.
Brazil is the world’s largest producer of sugarcane, soy, coffee, orange, guarana, acai and Brazil nut, is one of the top 5 producers of maize, papaya, tobacco, pineapple, banana, cotton, beans, coconut, watermelon and lemon.
Exports of the agribusiness in Brazil amounted to nearly 97 billion U.S. dollars in 2019, a decrease of approximately 4.3 percent in comparison to the previous year. Meanwhile, that same year, the Brazilian sector’s imports added up to 13.8 billion dollars. The top 5 Exports are Sugarcane, Soybeans, Coffee, Beef and Orange juice.
Major products in this Sector:
Sugarcane: Brazil is the leading sugar producer and exporter in the world and accounts for 20% of global production and 40% of world exports. About 75% of the sugar produced is exported to more than 100 different countries. Brazil is the largest world producer, with 672.8 million tons harvested in 2019. In 2019, sugar was the 9th most important product on the Brazilian export basket (2% of exports, at a value of U $ 4.6 billion).
Soybeans: There are currently an estimated 29 million hectares of land in Brazil used for farming soybeans. Brazil accounts for about 30% of global production of soybean crops and it is currently the second largest producer of soybeans worldwide, with the United States taking top spot with a 42% market share. Soy is the most important product on the country’s export basket: it is the 1st place on the list, with 12% of the country’s exports, at a value of U $ 26 billion in 2019; the country also exports soybean meal, which is the 8th most exported product (2.6% of Brazilian exports, worth U $ 5.8 billion in 2019) and soy oil (1.0 million tons in 2019, worth U $ 0.7 billion).
Coffee: Brazil leads the way as the largest coffee-producing nation in the world, achieving annual coffee production figures of 2,592,000 metric tons. The second-largest producer is Vietnam, with 1,650,000 metric tons, and Columbia in the third spot with 810,000 metric tons. In 2019, coffee was the 10th most important product in Brazil’s export basket (2% of exports, at a value of U $ 4.5 billion).
Agriculture Subsidy in Brazil:
Brazil provides relatively low levels of support and protection to agriculture. Producer support as a share of gross farm receipts fell from 7.6% to 1.7% between 2000 and 2019. Domestic prices are currently aligned with international markets and there is very little market price support (MPS).
Most of support to producers is provided through input payments, in particular concessional credit and, to lesser extent, crop insurance. Concessional credit is available for farm marketing and working capital but also for investment fixed capital. Since 2008 all support based on input use is conditional to environmental criteria and on farming practices.
Support to general services (GSSE), mainly on research, development and innovation, represented 37% of the Total support Estimate (TSE), but has fallen since 2000 as a percentage of agricultural gross value added. As a percentage of GDP, the TSE has also declined from 0.7% in 2000 to 0.3% in 2019.
Industry is an important part in the Brazil’s economy. It accounts for 17.92% of GDP and employed almost 19.59% of the workforce.
Major Industries in this Sector:
Mining: Mineral mining production in Brazil reached nearly 40 billion U.S. dollars in 2019 and generated over 195 thousand direct jobs. Brazil is the second-largest iron reserves in the world, the fourth-largest bauxite reserves, and the sixth-largest gold reserves, the bedrock of Brazil’s prominent mineral industry is mainly metallic ores. In 2019, the mining and metallurgy sector accounted for 2.44 percent of the Brazilian gross domestic product (GDP), down from a contribution of 2.47 percent a year earlier. The metallurgy segment had the highest contribution, adding up to 1.34 percent in both years.
Automotive: Brazil is the world’s seventh largest economy and the 8th biggest automotive producer. When it comes to producing new light vehicles. Brazil is the 6th largest producer. This industry comprises 5.5% of the GDP of the country contributing an amount worth BRL 266 bn. The top 5 automotive producers for passenger cars include Volkswagen, Fiat, General Motors, Ford, and Renault. In 2020, Brazil exported almost $6.8 billion worth of vehicles which was 3.2% of total Brazilian export.
Service sector is an important part in the Brazil’s economy. It contributes almost 63.25% in the GDP and employed almost 71.29% of the total Brazil’s workforce.
Major Industries in this sector:
Finance: The financial sector is by far the most important of the services industry in Brazil. The Brazilian banks showed great strength during the 2008 meltdown. The banking sector is the provider of huge funding for mega projects of mining and aerospace among other industries in the country. Brazil accounts for the largest number of banks among Latin American nations, it falls behind in terms of bank density. Since 2015, total bank assets in Brazil have remained stable at around seven trillion Brazilian reals. Overall, the industry reached profits amounting to 93 billion Brazilian reals that year.
Tourism: Tourism in Brazil accounts directly for 3.1% of GDP, rising to 9.6% if indirect effects are also included. The sector supported 2.1 million jobs in 2018, which accounts for 2.5% of total employment. In 2019, international tourist arrivals reached 6.6 million, a marginal increase of 0.5% from the previous year, and spent BRL 21.2 billion. Argentina, was the largest source market with 2.5 million tourists (37.7% of the total), followed by the United States (8.1%), Chile (5.9%), Paraguay (5.4%) and Uruguay (5.3%).
Top Companies in Brazil:
|Company Name||Sector||Market Cap (USD)|
|Petrobras||Oil and Gas||104.102B|
|Itau Unibanco Holding||Financial Services||85.662B|
|Banco Bradesco||Financial Services||71.942B|
|Banco Satander Brasil SA||Financial Services||47.927B|
|Banco do Brasil||Financial Services||38.433B|
|Investimentos ITAU||Financial Services||29.829B|
|Banco BTG Pactual||Financial Services||24.153B|
|Brasil Bolsa Balcao||Financial Services||22.778B|