Brazil Military, Economy and Transportation

Brazil Military, Economy and Transportation


Economy overview: With a large and developed agriculture, mining, manufacturing and service sector, the Brazilian economy outperforms the combined economy of other South American countries and continues to expand its presence in world markets. In the late 80s – early 90s. high inflation led to a decline in economic activity and investment. Plan “Real”, developed in the spring of 1994, was designed to sharply reduce inflation by pegging the local currency to the US dollar. Annual inflation fell below 10%, but this did not happen quickly enough to avoid significant real appreciation of the local currency during the transition phase of the Real plan. This meant that Brazilian goods became more expensive relative to those of other countries, which contributed to a large balance of payments deficit. However, there was no shortage of foreign exchange, because when the inflation rate stabilized and the debt crisis of the 1980s was overcome, the interest of the financial communities in the Brazilian market was restored. Financing the balance of payments deficit with capital inflows proved problematic when investors became less risk averse in emerging markets following the 1997 Asian financial crisis and the Russian default in August 1998. Following the development of a tax reform agenda and assurances of continued structural reforms Brazil received $41.5 billion in financial support from the IMF in November 1998. In January 1999, the Central Bank of Brazil announced that the real would no longer be pegged to the US dollar. This devaluation helped cushion the effects of the 1999 economic downturn, about which investors expressed concern in the summer of 1998. Brazil’s debt to GDP ratio in 1999 was below IMF requirements, which reassured investors about Brazil’s tight fiscal and monetary policy, even with a floating exchange rate. The economic situation continued to improve in 2000, with inflation remaining below double digits, and GDP growth of 4.5% is expected in 2001. Foreign direct investment in 2000 reached a record high of $30 billion. GDP growth is expected to be 4.5%. Foreign direct investment in 2000 reached a record high of $30 billion. GDP growth is expected to be 4.5%. Foreign direct investment in 2000 reached a record high of $30 billion.┬áSee to know more about Brazil Economics and Business.
GDP: Purchasing Power Parity $1.13 trillion (2000 est.)
Real GDP growth rate: 4.2% (2000 est.).
GDP per capita: Purchasing Power Parity $6,500 (2000 est.).
The composition of GDP by sectors of the economy: agriculture: 9%; industry: 29%; services: 62% (1999).
Proportion of population below the poverty line: 17.4% (1990 est.).
Percentage distribution of family income or consumption: 10% of the poorest families account for: 1%; 10% of the wealthiest families account for: 47.6% (1996).
Inflation rate at consumer prices: 6% (2000).
Labor force: 79 million people (1999 est.).
Employment structure: services 53.2%, agriculture 23.1%, industry 23.7%.
Unemployment rate: 7.1% (2000 est.).
Budget: revenues: $151 billion; expenses: $149 billion, including capital investments – $36 billion (1998).
Spheres of economy: textile, footwear, chemical, cement, woodworking industry, iron ore mining, tin, steel production, aircraft building, production of automobiles and components, other machinery and equipment.
Growth in industrial production: 6.9% (2000 OTs.).
Electricity generation: 337.44 billion kWh (1999)
Sources of electricity generation: fossil fuels: 5.28%; hydropower: 90.66%; nuclear fuel: 1.12%; others: 2.94% (1999).
Electricity consumption: 353.674 billion kWh (1999)
Electricity export: 5 million kWh (1999).
Electricity import: 39.86 billion kWh; note: electricity is imported from Paraguay (1999).
Agricultural products: coffee, soybeans, wheat, rice, corn, sugar cane, cocoa, citrus fruits; beef.
Export: $55.1 billion (free on board, 2000)
Exports: manufactured goods, iron ore, soybeans, shoes, coffee.
Export partners: USA 23%, Argentina 11%, Germany 5%, Netherlands 5%, Japan 5% (1999).
Imports: $55.8 billion (free on board, 2000)
Import articles: machinery and equipment, chemical products, oil, electricity.
Import partners: USA 24%, Argentina 12%, Germany 10%, Japan 5%, Italy 5% (1999).
External debt: $232 billion (2000) Recipient of economic assistance: no data.
Donor of economic aid:
Currency: real.
Currency code: BRL.
Exchange rate: BRL / USD – 1.954 (January 2001), 1.830 (2000), 1.815 (1999), 1.161 (1998), 1.078 (1997), 1.005 (1996), 0.918 (1995); note: October 1994 to January 14, 1999 the official exchange rate was not freely determined; Since January 15, 1999, the official exchange rate has been freely determined and is no longer pegged to the US dollar.
Fiscal year: calendar year.


Telecommunications Telephone lines: 17.039 million (1997).
Mobile cell phones: 4.4 million (1997)
Telephone system: well functioning system; domestic: wide microwave radio relay system and national satellite system with 64 earth stations; international: 3 coaxial submarine cables; satellite earth stations: 3 Intel-sat (Atlantic Ocean), 1 Inmarsat (eastern part of the Atlantic Ocean region), connected by microwave radio relay system to the MERCOSUR Brazilsat satellite earth station V3.
Broadcast stations: AM -1 365, FM – 296, shortwave – 161 (1999).
Radio receivers: 71 million (1997)
Television broadcast stations: 138 (1997).
Televisions: 36.5 million (1997)
Internet country code: br
Internet service providers: 50 (2000).
Number of users: 8.65 million (2000).


Transport Railways: total: 30,539 km (2,129 km electrified); note – excluding city roads; broad gauge: 5,679 km (1,600 m gauge) (1,199 km electrified); with standard gauge: 194 km (1.440 m gauge); narrow gauge: 24,666 km (1,000 m gauge) (930 km electrified); dual gauge: 336 km (1,000 m and 1,600 m gauges) (three rails) (1999 est.).
Roads: total: 1.98 million km; coated: 184,140 km; unpaved: 1,795,860 km (1996 est.).
Waterways: 50,000 km.
Pipelines: for crude oil: 2,980 km; for petroleum products: 4,762 km; for natural gas: 4,246 km (1998).
Ports and harbours: Belen, Vitoria, Ilheus, Imbi-tuba, Manaus, Paranagua, Porto Alegre, Recife, Rio de Janeiro, Rio Grande, Salvador, Santos, Fortaleza.
Merchant fleet: total: 171 ships (displacement 1,000 tons or more) with a total displacement of 3,788,999 gross register tons / 6,067,314 long tons of carrying capacity; ships of various types: bulk carriers – 33, cargo ships – 26, chemical tankers – 5, combination ships carrying ore and oil – 9, container ships – 12, liquefied gas tankers – 11, multifunctional heavy cargo ships – 1, cargo-passenger ships – 5, oil tankers – 56, ferries for the transport of loaded vehicles – 12, coastal passenger ships – 1 (2000 est.).
Airports: 3,264 (2000 est.).
Airports with paved runways: total: 570; over 3,047 m: 5; from 2438 to 3047 m:21; from 1,524 to 2,437 m: 141; from 914 to 1,523 m: 370; less than 914 m: 33 (2000 est.).
Airports with unpaved runways: total: 2,694; from 1,524 to 2,437 m: 68; from 914 to 1,523 m: 1,279; less than 914 m: 1,347 (2000 est.).

Armed Forces

Branches of the Armed Forces: Brazilian Army, Brazilian Navy (includes naval aviation and marines), Brazilian Air Force, Federal Police (military).
Enlistment age: 18 years old.
Total Military Manpower: Male 15 to 49: 48,298,486 (2001 est.).
Eligible for military service: men aged 15 to 49: 32,388,786 (2001 est.).
Number of persons reaching military age each year: male: 1,762,740 (2001 est.).
Military spending in dollar terms: $13.408 billion (1999)
Military spending as part of GDP: 1.9% (1999).

International Issues

International issues International disputes: no.
Illicit drugs: limited illicit cultivation of hemp, minor cultivation of coca (mostly for domestic consumption); the government has an extensive hemp eradication program; an important transit point for cocaine from Bolivia, Colombia and Peru destined for the US and Europe; increased use of the country by drug couriers as a staging base for drug trafficking by air between Peru and Colombia; drug trafficking is associated with increased violence and arms smuggling.

Brazil Military