Editing Economy of Brazil (section)

== Economic status ==
{| width="23%" style="toc: 25em; font-size: 85%; lucida grande, sans-serif; text-align: left;" class="wikitable floatright"
|+Statistical table
|-
!style="text-align:center; background:lightblue" colspan="2"|Inflation (IPCA)
|-
!style="text-align:left; vertical-align:top"|2002
|style="vertical-align:top"| 12.53%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2003
| style="background:#f0f0f0; vertical-align:top"| 9.30%
|-
!style="text-align:left; vertical-align:top"|2004
|style="vertical-align:top"|7.60%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2005
| style="background:#f0f0f0; vertical-align:top"| 5.69%
|-
!style="text-align:left; vertical-align:top"|2006
|style="vertical-align:top"| 3.14%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2007
| style="background:#f0f0f0; vertical-align:top"| 4.46%
|-
!style="text-align:left; vertical-align:top"|2008
|style="vertical-align:top"| 5.91%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2009
| style="background:#f0f0f0; vertical-align:top"| 4.31%
|-
!style="text-align:left; vertical-align:top"|2010
|style="vertical-align:top"| 5.90%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2011
| style="background:#f0f0f0; vertical-align:top"| 6.50%
|-
!style="text-align:left; vertical-align:top"|2012
|style="vertical-align:top"| 5.84%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2013
| style="background:#f0f0f0; vertical-align:top"| 5.91%
|-
!style="text-align:left; vertical-align:top"|2014
|style="vertical-align:top"| 6.41%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2015
| style="background:#f0f0f0; vertical-align:top"| 10.67%
|-
!style="text-align:left; vertical-align:top"|2016
|style="vertical-align:top"| 6.29%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2017
| style="background:#f0f0f0; vertical-align:top"| 2.95%
|-
!style="text-align:left; vertical-align:top"|2018
|style="vertical-align:top"| 3.75%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2019
| style="background:#f0f0f0; vertical-align:top"| 4.31%
|-
!style="text-align:left; vertical-align:top"|2020
|style="vertical-align:top"| 4.52%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2021
| style="background:#f0f0f0; vertical-align:top"| 10.06% 
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2022
| style="background:#f0f0f0; vertical-align:top"| 5,79%
|-
!style="text-align:center; vertical-align:top" colspan="2"|Source:<ref>[http://www.ipeadata.gov.br/ Inflation] Ipea</ref><ref>{{Cite web |date=2023-01-10 |title=IPCA vai a 0,62% em dezembro e fecha 2022 em 5,79% {{!}} Agência de Notícias |url=https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/36047-ipca-vai-a-0-62-em-dezembro-e-fecha-2022-em-5-79 |access-date=2023-08-30 |website=Agência de Notícias - IBGE |language=pt-BR}}</ref>
|-
!style="text-align:center; background:lightblue" colspan="2"|Average GDP growth rate 1950–2029
|-
!style="text-align:left; vertical-align:top"|1950–59
|style="vertical-align:top"| 7.1%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|1960–69
| style="background:#f0f0f0; vertical-align:top"| 6.1%
|-
!style="text-align:left; vertical-align:top"|1970–79
|style="vertical-align:top"| 8.9%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|1980–89
| style="background:#f0f0f0; vertical-align:top"| 3.0%
|-
!style="text-align:left; vertical-align:top"|1990–99
|style="vertical-align:top"| 1.7%
|-
! style="background:#f0f0f0; text-align:left; vertical-align:top"|2000–09
| style="background:#f0f0f0; vertical-align:top"| 3.3%
|-
!style="text-align:left; vertical-align:top"|2010–19
|style="vertical-align:top"| 1.4%
|-
!2020-29
|2.3%
|-
!style="text-align:center; vertical-align:top" colspan="2"|Source:<ref>[http://www.ipeadata.gov.br/ Average Exchange Rate] Ipea</ref>
|}

=== Sustainable growth ===
Portuguese explorers arrived in 1500, but it was only in 1808 that Brazil obtained a permit from the [[Portuguese Empire|Portuguese colonial government]] to set up its first factories and manufacturers. In the 21st century, Brazil became the eighth largest economy in the world. Originally, its exports were basic raw and primary goods, such as sugar, rubber and gold. Today, 84% of exports are of manufactured and semi-manufactured products.

The period of great economic transformation and growth occurred between 1875 and 1975.<ref>{{cite book|last1=Fagoyinbo|first1=Joseph Babatunde|title=The Armed Forces: Instrument of Peace, Strength, Development and Prosperity|date=May 2013|publisher=Author House|isbn=978-1-4772-1844-0|page=209|url=https://books.google.com/books?id=tUdHBgAAQBAJ&pg=PA209|language=en}}</ref>

In the last decade, domestic production increased by 32.3%. [[Agribusiness]] (agriculture and cattle-raising), which grew by 47% or 3.6% per year, was the most dynamic sector – even after having weathered international crises that demanded constant adjustments to the Brazilian economy.<ref>[http://www.brasil.gov.br/ingles/about_brazil/brasil_topics/economy/categoria_view Sustainable growth] Brazilian Government. Retrieved on 24 October 2011.</ref> The Brazilian government also launched a program for economic development acceleration called [[Programa de Aceleração do Crescimento]], aiming to spur growth.<ref>{{cite news|title=From crisis to crisis in Brazil|url=http://www.economist.com/node/9537065|newspaper=The Economist|date=24 July 2007}}</ref>

Brazil's transparency rank in the international world is 75th according to [[Transparency International]].<ref>[http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table Transparency by country 2009] [[Transparency International]]. Retrieved on 24 October 2011.</ref>

=== Control and reform ===
Among measures recently adopted to [[Balance (accounting)|balance]] the economy, Brazil carried out reforms to its social security (state and retirement pensions) and tax systems. These changes brought with them a noteworthy addition: a Law of Fiscal Responsibility which controls public expenditure by the executive branches at federal, state and municipal levels. At the same time, investments were made towards administration efficiency and policies were created to encourage exports, industry and trade, thus creating "windows of opportunity" for local and international investors and producers.

With these alterations in place, Brazil has reduced its vulnerability: it does not import the oil it consumes; it has halved its domestic debt through exchange rate-linked certificates and has seen exports grow, on average, by 20% a year. The exchange rate does not put pressure on the industrial sector or inflation (at 4% a year), and does away with the possibility of a [[liquidity crisis]]. As a result, the country, after 12 years, has achieved a positive balance in the accounts which measure exports/imports, plus interest payments, services and overseas payment. Thus, respected economists say that the country will not be deeply affected by the current world economic crisis.<ref>[http://www.brasil.gov.br/ingles/about_brazil/brasil_topics/economy/categoria_view Control and reform] Brazilian Government. Retrieved on 24 October 2011.</ref>

In 2017, President [[Michel Temer]] refused to make public the list of companies accused of "[[modern slavery]]". The list, made public yearly since the presidency of [[Luiz Inácio Lula da Silva|Luís Inácio Lula da Silva]] in 2003, was intended to persuade companies to settle their fines and conform to labor regulations, in a country where corruption of the political class risked compromising respect for the law. The relations of the president-in-office with the "landowner lobby" were denounced by dismissed President [[Dilma Rousseff]] on this occasion.<ref>{{cite web| url = https://www.humanite.fr/au-bresil-temer-protege-les-esclavagistes-633475| title = Au Brésil, Temer protège les esclavagistes | date = 16 March 2017 }}</ref>

[[File:Downtown of Rio de Janeiro.jpg|thumb|right|Central business district of [[Rio de Janeiro]].]]

=== Consistent policies ===
Support for the productive sector has been simplified at all levels; active and independent, [[National Congress of Brazil|Congress]] and the Judiciary Branch carry out the evaluation of rules and regulations. Among the main measures taken to stimulate the economy are the reduction of up to 30 percent on manufactured products tax (IPI), and the investment of $8&nbsp;billion on road cargo transportation fleets, thus improving distribution logistics. Further resources guarantee the propagation of business and information telecenters.

The policy for industry, technology and foreign trade, at the forefront of this sector, for its part, invests $19.5&nbsp;billion in specific sectors, following the example of the software and semiconductor, pharmaceutical and medicine product, and capital goods sectors.<ref>[http://www.brasil.gov.br/ingles/about_brazil/brasil_topics/economy/categoria_view Consistent policies] Brazilian government. Retrieved on 24 October 2011.</ref>

=== Mergers and acquisitions ===
Between 1985 and 2017, 11,563 [[Mergers and acquisitions|mergers & acquisitions]] with a total known value of US$1,185&nbsp;billion<!-- 1,185 billion = 1.18 trillion?? --> with the involvement of Brazilian firms were announced.<ref>{{Cite news|url=https://imaa-institute.org/m-and-a-statistics-countries/|title=M&A Statistics by Countries - Institute for Mergers, Acquisitions and Alliances (IMAA)|work=Institute for Mergers, Acquisitions and Alliances (IMAA)|access-date=23 February 2018|language=en-US}}</ref> The year 2010 was a new record in terms of value with $115&nbsp;billion of transactions. It is worth noticing, that in the top 100 deals by value there are only four cases of Brazilian companies acquiring a foreign company. This reflects the strong interest in the country from a direct investment perspective.

Here is a list of the largest deals where Brazilian companies took on either the role of the acquiror or the target:
{| class="wikitable"
! Date Announced
! Acquiror Name
! Acquiror Mid Industry
! Acquiror Nation
! Target Name
! Target Mid Industry
! Target Nation
! Value of Transaction ($mil)
|-
|9 January 2010
|[[Petrobras]]
|Oil & Gas
|Brazil
|Brazil-Oil & Gas Blocks
|Oil & Gas
|Brazil
|42,877.03
|-
|20 February 2017
|[[Vale (company)|Vale SA]]
|Metals & Mining
|Brazil
|Valepar SA
|Metals & Mining
|Brazil
|20,956.66
|-
|8 November 2006
|Cia Vale do Rio Doce SA
|Metals & Mining
|Brazil
|Inco Ltd
|Metals & Mining
|Canada
|17,150.30
|-
|20 February 2008
|[[B3 (stock exchange)|BM&F]]
|Brokerage
|Brazil
|Bovespa Holding SA
|Brokerage
|Brazil
|10,309.09
|-
|13 January 2000
|[[Telefónica]] SA
|Telecommunications Services
|Spain
|Telecommunicacoes de São Paulo
|Telecommunications Services
|Brazil
|10,213.31
|-
|31 July 2014
|Telefónica Brasil SA
|Telecommunications Services
|Brazil
|GVT Participacoes SA
|Telecommunications Services
|Brazil
|9,823.31
|-
|5 October 2010
|Telefónica SA
|Telecommunications Services
|Spain
|Brasilcel NV
|Telecommunications Services
|Brazil
|9,742.79
|-
|11 March 2008
|[[Banco Itaú|Banco Itaú Holding Financeira]]
|Banks
|Brazil
|[[Itaú Unibanco|Unibanco Holdings SA]]
|Other Financials
|Brazil
|8,464.77
|-
|3 March 2004
|[[Ambev]]
|Food and Beverage
|Brazil
|John Labatt Ltd
|Food and Beverage
|Canada
|7,758.01
|-
|10 January 2010
|[[China Petrochemical Corporation]]
|Oil & Gas
|China
|Repsol YPF Brasil SA
|Oil & Gas
|Brazil
|7,111.00
|-
|2 July 2012
|Banestado Participacoes
|Other Financials
|Brazil
|[[Rede S.A.|Redecard SA]]
|Computers & Peripherals
|Brazil
|6,821.71
|}

=== Entrepreneurship ===
[[Image:Sede-da-embraer.jpg|thumb|right|[[Embraer]], a Brazilian company, is the third-largest [[commercial jet]] maker in the world, just behind [[Airbus]] and [[Boeing]].]]
According to a search of [[Global Entrepreneurship Monitor]] in 2011 Brazil had 27 million adults aged between 18 and 64 either starting or owning a business, meaning that more than one in four Brazilian adults were entrepreneurs. In comparison to the other 54 countries studied, Brazil was the third-highest in total number of entrepreneurs. The [[Institute of Applied Economic Research]] (Ipea), a government agency, found that 37&nbsp;million jobs in Brazil were associated with businesses with less than 10 employees.<ref>{{cite web |url=http://web.grupomaquina.com/maquinaNet/techEngine?sid=MaquinaNet&command=noticiaClippingSite&action=visualizar&idNoticia=2368106366895 |title=:: Máquina News :: |access-date=13 July 2013 |url-status=dead |archive-url=https://web.archive.org/web/20140426232504/http://web.grupomaquina.com/maquinaNet/techEngine?sid=MaquinaNet&command=noticiaClippingSite&action=visualizar&idNoticia=2368106366895 |archive-date=26 April 2014  }} A spirit for enterprise, ''[[Financial Times]]'', 8 May 2013</ref>

Even though Brazil ranks internationally as one of the hardest countries in the region to do business due to its complicated bureaucracy, there is a healthy number of entrepreneurs, thanks to the huge internal consumer market and various government programs.

The most recent research of Global Entrepreneurship Monitor revealed in 2013 that 50.4% of Brazilian new entrepreneurs are men, 33.8% are in the 35–44 age group, 36.9% completed high school and 47.9% earn 3–6 times the Brazilian minimum wage. In contrast, 49.6% of entrepreneurs are female, only 7% are in the 55–64 age group, 1% have postgraduate education and 1.7% earn more than 9 times the minimum wage.<ref>{{cite web |url=http://www.gemconsortium.org/docs/2645/gem-2012-global-report |title=GEM 2012 Global Report :: GEM Global Entrepreneurship Monitor :: |access-date=13 July 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130623235936/http://www.gemconsortium.org/docs/2645/gem-2012-global-report |archive-date=23 June 2013  }} GEM 2012 Global Report</ref>

=== Credit rating ===
Brazil's [[credit rating]] was downgraded by Standard & Poor's (S&P) to BBB in March 2014, just one notch above junk.<ref>[https://www.bloomberg.com/news/2014-10-27/rousseff-losing-bond-investors-as-downgrade-to-junk-looms.html Rousseff Losing Bond Investors as Downgrade to Junk Looms – Bloomberg] Bloomberg</ref> It was further downgraded in January 2018 by S&P to BB−, which is 2 notches below investment grade.<ref>{{Cite news|url=https://www.reuters.com/article/brazil-sovereign-downgrade-idUSL1N1P628Y|title=S&P cuts Brazil credit rating as pension reform doubts grow|date=11 January 2018|work=Reuters|access-date=6 January 2020|language=en}}</ref>

=== Climate change ===
{{excerpt|Climate change in Brazil|Economic impacts}}