What Is Brazil's Economy Like?

The capital city of Brazil is Brasilia. It is the 10th biggest economic power in the world. The Gross Domestic Product is 600 billion dollars. Lula Da Silva government has set the monetary and fiscal policies for the country. The economy is strong due to exports which is the main support for the Brazilian economy. The Gross Domestic Product is 3.5 percent in 2006. Still the country is under the pressure of heavy debt. The inflation rate is decreasing day by day. It was 5.3 percent in the 2004 and 4.7 percent in 2005. The economies of this country are diversified and have rich natural resources. The strong base of this country is strong agriculture sector.

It is biggest producer of Oranges, Coffee and sugarcane and it has attracted many food processing industries in their country. The active industries of this country are aircraft manufacturing, textile, cars, pharmaceuticals, steel and chemical industry sectors. This country attracts lot of foreign investment and provides them with good facilities to do business in their country. It has put heavy customs on the imports of the good within the country. Trade is carried with United States, China, Argentina and Germany. So the country has very diversified portfolio.

Brazil is economicaly one of the strongest Latin American countries, with its GDP outweighing that of any of the other Latin American nations. According to the World Bank and the International Monetary Fund, Brazil's economy is the ninth largest in the world in terms of Purchasing Power Parity and eleventh largest going by market exchange rates.

Brazil has been working on expanision of its presence in world markets considerably. The country is rich in agriculatural and mineral resources, and is also well developed in the manufacturing and service sectors, enabling exploitation of its vast resources.
Brazil posesses a diversified middle income economy. There are significant variations in development levels, with most large industry being concentrated in the South and South-East. The North-East on the other hand is Brazil's poorest region, but is beginning to generate interest and attract new investment. Brazil's industrial sector is more advanced than any other Latin American nation.