Question

5. In regards to Brazil - describe the economic characteristics of the country including: output, unemployment, inflation, exchange rate, and trade.

Answer 1

Brazil is the largest country in both South America and Latin America. At 8.5 million square kilometers and with over 208 million people, It is the world's fifth-largest country by area and the sixth most populous. The capital is Brasília, and the most populated city is São Paulo. It is the largest country to have Portuguese as an official language and the only one in the Americas.

The economy of Brazil is the world's eighth largest economy by nominal GDP and eighth largest by purchasing power parity. The Brazilian economy is characterized by a mixed economy that relies on import substitution to achieve economic growth. Brazil has an estimated US$21.8 trillion worth of natural resources which includes vast amounts of gold, uranium, iron, and timber.

The service sector is the largest component of the gross domestic product (GDP) at 67.0 percent, followed by the industrial sector at 27.5 percent. Agriculture represents 5.5 percent of GDP (2011).The Brazilian labor force is estimated at 100.77 million of which 10 percent is occupied in agriculture, 19 percent in the industry sector and 71 percent in the service sector.

Brazil has the second-largest manufacturing sector in the Americas. Accounting for 28.5 percent of GDP, Brazil's industries range from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables.

Brazil is one of the world's leading producers of hydroelectric power, with a current capacity of about 260,000 megawatts.

Brazil has an unemployment rate of 12.6% as of February 2018 with employed persons of 91.09 Million with labour force participation rate of 61.6%. It has an inflation rate of 2.68% as of March 2018 where Consumer Price Index is 4951 Index Points with core inflation rate of 2.91%.

Brazil's Balance of Trade amounts to 6281 USD Million as of March 2018, where Exports amounts to 20089 USD Million and Imports amounts to 13809 USD Millions.

US Dollar to Brazilian Real Exchange Rate is at a current level of 3.409.