2. Overview Brazil : economic overview Growth In the world Labour growth Inflation Causes Solutions Conclusion Sources
3. Brazil : economic overview BRIC Largest economy in Latin America 7th largest economy in the world (IMF) Unemployment rate : 8.5 % Main export products Metals Aircraft & electrical equipments Coffee & soybeans Textiles & footwear
4. Growth : in the world 8th largest GDP in world GDP : + 7.5% (2010) Petrobras (oil & gas) : ranked 8th Vale (mining) : ranked 49th Still growing Many opportunities
5. Growth : labour Labour force : 103.6 million Ranked 6th in world Too few engineers and the like Attraction of foreign workers Mostly from the US
6. Inflation : causes Inflation above 5% Causes Growth Overvalued Brazilian Real Capital inflow
7. Inflation : solutions Attempts Raised rates from 10.75% to 11.25% Raised rates from 11.25% to 11.75% 50 bnreais of spending cuts Other solutions (critics) 70 bnreais of spending cuts Overhaul of the public finances Big increase in banks’ reserve requirements
8. Conclusion Brazil = growth Will keep growing in next decade Growth has to be controlled Anti-inflation measures But keep stimulating growth Keeping economy healthy