Brazil has a moderate free market and export-oriented economy. Measured nominally, its gross domestic product surpasses a trillion dollars, the tenth in the world and the second in the Americas; measured by purchasing power parity, $1.9 trillion, making it the eighth largest economy in the world and the second largest in the Americas, after the United States. In Reais (Brazilian currency), its GDP is estimated at R$2.6 trillion reais in 2007.
Brazil is a member of diverse economic organizations, such as Mercosur, SACN, G8+5, G20 and the Cairns Group. Its trade partners number in the hundreds, with 80% of exports mostly of manufactured or semi-manufactured goods. Brazil's main trade partners are: the EU (26% of trade), Mercosur and Latin America (25%), Asia (16%), the United States (14.3%), and others (18.7%).
The owner of a sophisticated technological sector, Brazil develops projects that range from submarines to aircraft and is involved in space research: the country possesses a satellite launching center and was the only country in the Southern Hemisphere to integrate the team responsible for the construction of the International Space Station (ISS). It is also a pioneer in many fields, including ethanol production.
Brazil is also a pioneer in the fields of deep water oil research from where 73% of its reserves are extracted. According to government statistics, Brazil was the first capitalist country to bring together the ten largest car assembly companies inside its national territory.
Brazil has the second most advanced industrial sector in the Americas. Accounting for one-third of GDP, Brazil's diverse industries range from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables. With increased economic stability provided by the Plano Real, Brazilian and multinational businesses have invested heavily in new equipment and technology, a large proportion of which has been purchased from U.S. firms.
Brazil has a diverse and sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16% of the GDP. Although undergoing a major overhaul, Brazil's financial services industry provides local businesses with a wide range of products and is attracting numerous new entrants, including U.S. financial firms. The São Paulo and Rio de Janeiro stock exchanges are undergoing a consolidation and the previously monopolistic reinsurance sector is being opened up to third party companies.
As of 31 December 2007, there were an estimated 21,304,000 broadband lines in Brazil. Over 75% of the broadband lines were via DSL and 10% via cable modems.
Proven mineral resources are extensive. Large iron and manganese reserves are important sources of industrial raw materials and export earnings. Deposits of nickel, tin, chromium, uranium, bauxite, beryllium, copper, lead, tungsten, zinc, gold, and other minerals are exploited. High-quality cooking-grade coal required in the steel industry is in short supply.
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Economy Of Brazil