Brazil’s Current Economy in Charts

Emerging markets are once again the hot destination for investors this year. Brazil continues to be a favorite destination for foreign capital. The central bank of Brazil, Banco Central Do Brasil recently released the “Brazil’s Economic Chart Pack” showing  a snapshot of the current state of the economy.

Some of the interesting charts are presented below:

1. The Public Sector Net Debt trend is down. In 1Q,2009 net debt stood at 37.6% of GDP

Brazil-Debt

2.Brazil has a trade surplus as shown in the chart below

Brazil Trade

3.More than half all Brazil’s  exports is for emerging market countries. The U.S. accounts for just 13.2% of Brazil’s exports

brazil-trade

4.Only about 40% of exports are primary products which consists of iron ore, food, oil and tobacco. Manufactured goods total about 45%. These include buses, cars, tractors, planes, etc. Hence contrary to popular belief,Brazil is not just a commodity exporter. Nearly half of all exports are finished products.

Brazil-Exports

5. Unlike in the U.S. and Western Europe, credit growth is actually higher this year in Brazil. Consumers and Corporates increased credit by 18.7% and 22.7% year-over-year for April this year.

Brazil Credit Growth

Source: Banco Central Do Brasil

Related:

ETF:  iShares MSCI Brazil Index (EWZ)
Banco Bradesco (BBD)
Itau Unibanco Holding SA (ITUB)

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