Economic Indicators

For Brazil in year 2009

GDP (Constant Prices, National Currency) for Brazil in year 2009 is BRR 1,359.71 Billion. Real GDP is expressed in billions of national currency units; the base year is country-specific.

GDP Growth (Constant Prices, National Currency) for Brazil in year 2009 is -0.185 %. Annual percentages of constant price GDP are year-on-year changes; the base year is country-specific.

GDP (Current Prices, National Currency) for Brazil in year 2009 is BRR 3,143.02 Billion. GDP is expressed in billions of national currency units.

GDP (Current Prices, US Dollars) for Brazil in year 2009 is US$ 1,574.04 Billion. Values are based upon GDP in national currency and the exchange rate projections provided by country economists for the group of other emerging market and developing countries. Exchanges rates for advanced economies are established in the WEO assumptions.

GDP Deflator for Brazil in year 2009 is 231.154 (Index, Base Year as per country's accounts = 100). The GDP deflator is derived by dividing current price GDP by constant price GDP and is considered to be an alternate measure of inflation. Please note: Data are expressed in the base year of each country's national accounts.

GDP Per Capita (Constant Prices, National Currency) for Brazil in year 2009 is BRR 7,101.02 . GDP is expressed in constant national currency per person. Data are derived by dividing constant price GDP by total population.

GDP Per Capita (Current Prices, National Currency) for Brazil in year 2009 is BRR 16,414.27 . GDP is expressed in current national currency per person. Data are derived by dividing current price GDP by total population.

GDP Per Capita (Current Prices, US Dollars) for Brazil in year 2009 is US$ 8,220.36 . GDP is expressed in current U.S. dollars per person. Data are derived by first converting GDP in national currency to U.S. dollars and then dividing it by total population.

GDP (PPP), US Dollars for Brazil in year 2009 is US$ 2,013.19 Billion. These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been

GDP Per Capita (PPP), US Dollars for Brazil in year 2009 is US$ 10,513.79 . These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been

GDP Share of World Total (PPP) for Brazil in year 2009 is 2.871 %. These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been

Implied PPP Conversion Rate for Brazil in year 2009 is 1.561 . These data form the basis for the country weights used to generate the World Economic Outlook country group composites for the domestic economy. Please note: The IMF is not a primary source for purchasing power parity (PPP) data. WEO weights have been

Inflation, Average Consumer Prices (Indexed to Year 2000) for Brazil in year 2009 is 181.336 (Index, Base Year 2000 = 100). Data for inflation are averages for the year, not end-of-period data. The index is based on 2000=100.

Inflation (Average Consumer Price Change %) for Brazil in year 2009 is 4.899 %. Data for inflation are averages for the year, not end-of-period data.

Inflation, End of Year (Indexed to Year 2000) for Brazil in year 2009 is 179.249 (Index, Base Year 2000 = 100). Data for inflation are end of the period, not annual average data. The index is based on 2000=100.

Inflation (End of Year Change %) for Brazil in year 2009 is 4.312 %. Data for inflation are end of the period, not annual average data.

Population for Brazil in year 2009 is 191.481 Million.

MARKET SPOTLIGHT: GDP expanded 8.8% y/y in 2010 Q2. As host of FIFA WORLD Cup (2014) and The Olympic Games (2016), Brazil is expected to invest massively in new infrastructure starting this year.The Current Account deficit is expected to widen in 2010.

October 2010 ECONOMICS

Real Sector: The economy experienced slight moderation in growth in the second quarter, however, continues to grow well above potential (5%). Real GDP expanded 8.8% y/y in Q2 2010, driven predominantly by domestic demand and investment. Industrial production is demonstrating signs of milder expansion in the second half of 2010 as less accommodative macroeconomic conditions come into play, as well as remaining uncertainties surrounding the global outlook. GDP is expected to grow 7.7% in 2010 and 5.1% in 2011. Employment market data, as well as industrial and economic activity indicators are showing strong signs of
recovery.

Monetary: Inflation has reached the central bank target rate of 4.5% y/y in August, based on lower food prices. EDC Economics considers it likely that the Central Bank will continue with rate hikes in the near future. The CB has begun withdrawal of monetary stimulus by increasing banks reserve requirements to almost pre-crisis levels as well as increased the Selic by 200 bps since April to 10.75%. Credit growth is expanding very rapidly and the CB estimates that financial credit will be equivalent to 48% of GDP by the end
of the year. Responsible economic management and growing monetary policy independence lead us to believe that inflation will remain within the Central Bank target band (4.5%, +-2) over the next two years. The Real is anticipated to settle around R$1.8/USD by the end of 2010.

External Sector: The Lula administration has used the last few years of solid global demand to lower external indebtedness, smooth its debt maturity profile and improve currency and interest rate dynamics. Massive capital inflows have allowed foreign exchange reserves to grow to around USD 275.8bn (equivalent to more than a year worth of imports). On the downside, the CA deficit will amount to around 3.5% of GDP this year, and although FDI may not be sufficient to cover the deficit; EDC Economics does not anticipate any financing
problems over the forecast horizon.

Fiscal: Although the government has managed to respect primary surplus targets and despite recently announcing cuts in spending for the 2010 budget, the lack of spending restraint in the recent past has meant a continuous increase in the tax burden, general budget deficits and a deteriorating public debt to GDP ratio over the last couple of years. On the up side, as of August, gross public debt has diminished to 59% of GDP, compared to 63% in 2009. Brazil deleveraging position is improving considering that, at around 10% of GDP, the public sector financing needs (government deficits and amortizations) are high by regional standards;
keeping in mind that the solid domestic market will likely absorb most of the burden. The second phase of the PAC has been approved and the government has expanded its projections for spending in infrastructure and social developments to USD 886bn between 2011 and 2014.

Outlook: The outlook for the Brazilian economy is positive. Over the short-term, downside risks are associated with a rapid deterioration in the current account balance that leave the country more exposed to adverse financial conditions. The government also needs to prevent the formation of asset bubbles in the economy. In the medium-term, both private and public consumption will continue to grow faster than GDP, posing pressures on domestic production capacity and prices. More investment will be needed to keep up with increasing domestic demand. Some structural reforms need to be undertaken to ensure sustainable growth and
improve fiscal accounts.