Brazil covers a total area of 8,514,215 km2 (3,287,357 sq mi) which includes 8,456,510 km2 (3,265,080 sq mi) of

land and 55,455 km2 (21,411 sq mi) of water.

GDP Area:
(current):
1,774.72 8.516 mi
bil USD llion km²

Population: Currency:
200.4 milli Brazilian
on real

GDP GDP per

growth capita:
rate: -
3.8% 11,208.
(2016) 08 USD
Brazil Population GDP(Current US$)
GDP per Capita (Current US$) GDP per Capita Growth (annual %)
INFLATION
• Inflation touched its all time high of 10.71% in January 2016
• Consumer prices in Brazil rose 7.87 percent year-on-year in October of 2016, easing from an 8.48
percent increase in September
• Central Bank slashed its benchmark interest rate in 2011-12 which resulted in inflation well above the
bank’s self-imposed upper limit of 6.5%, and way above its 4.5% target
• Unemployment Rate in Brazil remained unchanged at 11.80 percent in September from 11.80 percent in
August of 2016
• Unemployment Rate in Brazil averaged 8 percent from 2012 until 2016, reaching an all-time high of
11.80 percent in August of 2016 and a record low of 6.20 percent in December of 2013
• Current account balance (BoP; US dollar) in Brazil was last measured at -104 Billion in 2014, according to
the World Bank
• Exports fell 14.5 percent year-on-year while imports dropped at a faster 19.1 percent since October,
2011
• THE GOVERNMENT COLLECTED 91.8 BILLION REAL ($29 BILLION) IN TAXES IN AUGUST 2016, THE WORST
PERFORMANCE SINCE 2009

• THE CENTRAL GOVERNMENT’S BUDGET DEFICIT BEFORE INTEREST PAYMENTS WIDENED TO 20.3 BILLION
REAL($6.3 BILLION) IN AUGUST
• The economy contracted 3.8 percent in 2015
• Unemployment has reached 11 percent, with over 10 million people out of jobs
• Fiscal revenues have significantly declined due to falling activity.
• The difference between revenues and expenditures eached nearly 11 percent of gross domestic product
(GDP)
• Between 2014 and 2015, the gross debt to GDP ratio rose from about 65 percent to just over 70 percent.
• Put differently, addressing Brazil’s five immediate problems is:

ESTABLISHING THE TRUE SIZE OF BRAZIL’S FISCAL PROBLEMS

PUTTING A BREAK ON EXPENDITURE GROWTH

RENEGOTIATING STATE DEBTS WITH THE FEDERAL GOVERNMENT

RETHINKING THE ROLE OF PUBLIC BANKS

OUTLINING A TRADE AGENDA AND STRATEGY

RECESSION

INFLATION AND INTEREST

RATES

JUNK BOND RATING

Recession continued to abate in Q4

Industrial production rebounded in September

Current account deficit moderated

Government is making progress on fiscal reforms

• The economy is emerging from a severe and
protracted recession.
• Unemployment is projected to continue rising until
2017
• Inflation will gradually return into the target range
• Public expenditures have been outgrowing GDP for
many years and public debt has increased.
• Next year, the GDP growth is expected to rebound to
a 1.0% expansion.