International Market Development

International market development | Comprehensive analysis of Brazilian economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-24 11:43:55

In this article, we mainly introduce the basic situation of the Brazilian market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, infrastructure construction, GDP, foreign exchange reserves, employment, prices, corporate income tax, personal tax rates, etc.

Introduction

The Federal Republic of Brazil (Portuguese: República Federativa do Brasil, English: The Federative Republic of Brazil, República Federativa do Brasil), referred to as Brazil, is the largest country in South America and enjoys the reputation of the "kingdom of football". With a total land area of 8,514,900 square kilometers, it ranks fifth in the world and borders ten countries with Uruguay, Argentina, Paraguay, Bolivia, Peru, Colombia, Venezuela, Guyana, Suriname, and French Guiana. Brazil is divided into 26 states and 1 federal district, under which there are cities.

Brazil has abundant natural resources and a complete industrial base. Its GDP ranks first in South America, the seventh largest economy in the world, one of the BRIC countries, a member of the League of South American Nations, and one of the founding countries of the Rio Group. 1. The Southern Common Market, a member of the Group of 20 nations, an observer of the Non-Aligned Movement, is an important developing country and a strong aviation manufacturing country. Football is the mainstream sport of Brazilian cultural life.

Capital

Brasilia (English: Brasilia, Portuguese: Brasília) is the fourth largest city in Brazil. It is located on the Goiás Plateau in the central part of Brazil. It is the capital of Brazil and a modern emerging city. It was founded in 1956 by the Brazilian President Juscelino · Kubitschek argued that it took 41 months to complete the project.

Brasilia Cathedral Image | Pixabay

Brasilia is 1,100 meters above sea level, 900 kilometers from Rio de Janeiro to the southeast and 865 kilometers from Sao Paulo to the south. The Federal District, connected with 8 satellite towns, covers an area of 5814 square kilometers and has a population of 2.79 million.

Main City

1. São Paulo

São Paulo is located in the state of Sao Paulo in southeastern Brazil. It is the capital of the state of São Paulo, the largest city in Brazil, and the largest, most prosperous and wealthy city in South America, and a world-famous international metropolis. Sao Paulo was established as a city on January 25, 1554. As of 2010, São Paulo has a population of 10.88 million, making it the largest city in Brazil and even the southern hemisphere. In addition to being Brazil's largest economic city, Sao Paulo is also a major logistics center in North and South, with roads extending in all directions. However, problems such as too many vehicles and traffic jams have caused a certain degree of trouble. Sao Paulo is also the third largest city in helicopter traffic after New York and Tokyo.

2. Rio de Janeiro

Rio de Janeiro (Portuguese: Rio de Janeiro, meaning "River in January"), referred to as Rio (Rio), was once the capital of Brazil (1763-1960). It is located in the southeast coastal area of Brazil, bordering the Atlantic Ocean in the southeast, and has a long coastline. 636 kilometers.

Rio de Janeiro is an important gate to Brazil and even South America. It is also one of the most economically developed regions in Brazil and South America. It is known as an important transportation hub and center of information and communication, tourism, culture, finance and insurance in Brazil.

Rio de Janeiro is Brazil's second largest industrial base. The port of Rio de Janeiro in the city is one of the world’s three great natural harbours. The Christ of Rio de Janeiro is a symbol of the city and one of the new seven wonders of the world. Rio de Janeiro is also the second largest city in the Federal Republic of Brazil, second only to Sao Paulo, and is also known as the second capital of the Federal Republic of Brazil. It has the country's largest import port, the national economic center, and an important transportation center in the country. With mountains and waters behind, the harbor is excellent. The industries mainly include textiles, printing, automobiles, etc. There are more than 700 banks and the largest stock exchange; there is the world's largest Maracana Stadium. The seashore has beautiful scenery and is a famous tourist attraction in South America.

3. El Salvador

Salvador, an important natural deep-water port on the Atlantic coast of Brazil, the capital of the state of Bahia. Located on the east coast of Todos (Santos) Bay. With a population of 3,459,377 (as of 2010.8.1), it is the third largest city in Brazil. The ancient city is one of the oldest cities in Brazil. It was built in 1549. The first churches were built by the priest Jesus in 1549. El Salvador was the seat of the Brazilian capital until 1763. It is a comprehensive industrial and commercial city. The nearby Candeyas oil field produces oil. Industries include petroleum refining and petrochemicals, automobiles, food, tobacco, textiles, shipbuilding, etc. Sea and land transportation is developed, and there are airports in the suburbs. The port has wide open water and deep water, which can berth ocean-going vessels and supertankers, and export textiles, tobacco, coffee, oil, etc. The urban area is built on a peninsula extending into the Atlantic Ocean. It is divided into high and low cities, and is connected by elevators and cable cars. Multi-colonial buildings and churches, as well as universities and museums. The seaside has beautiful scenery and is a tourist attraction.

4. Brasilia

Brasilia (English: Brasilia, Portuguese: Brasília), the capital of the Federal Republic of Brazil, is the fourth largest city in Brazil. Brasilia’s GDP ranks fifth among Latin American cities and third in Brazil. Its GDP per capita is the highest among Latin American cities. Brasilia was founded in 1956-1960. It was planned and constructed with new towns and urban planning methods. It is also famous for its boldly designed buildings and rapidly growing population. On April 21, 1960, Brazil moved its capital from Rio de Janeiro to Brasilia in order to accelerate its inland development. Brasilia is listed as a UNESCO World Heritage Site. Brasilia is the world's largest city built after the 20th century.

5. Recife

Recife, a port city in northeastern Brazil, a historic city, an important naval and air base in Brazil, and the capital of Pernambuco. Located in the south of Cape Branco at the eastern end of the South American continent. The urban area is composed of the mainland, a peninsula and an island, and is divided vertically and horizontally by numerous rivers and channels, connected by iron and stone bridges. Known as the Venice of Brazil. The inland agriculture and animal husbandry products are abundant. Industries include textile, sugar, food, cigarettes, oil extraction, chemistry, cement, metallurgy, shipbuilding and other sectors. It is a modern and excellent seaport with a coral reef barrier, capable of berthing large ocean ships, exporting cane sugar, cotton, vegetable oil, grains, fruits, leather, sisal, etc. It is a railway and highway transportation hub. There is an international airport.

  Jet Lag

The time difference between China and Brazil is 11 hours, and the time in Brazil is 11 hours slower than the time in China.

  Population and Ethnicity

The population is 210 million (2019).

Brazil is a multi-ethnic country, with 53.7% of white people, 38.5% of mulattoes, 6.2% of blacks, 0.5% of yellows, and 0.4% of Indians.

  Language

The official language is Portuguese.

  Main Holiday

January 1st / New Year's Day;
In February / Carnival / also known as Marshmallow, is the largest folk festival in Brazil. Rio Carnival is world-renowned. The time starts three days before the Catholic Feast of Lent, usually the second month of the Gregorian calendar, and occasionally the end of January or the beginning of March;
April 2nd / Good Friday;
April 21st / Brazil National Independence Movement Day;
May 1st / International Labor Day;
June 3rd / Eucharist Day;
September 7th / Independence Day (Brazil National Day) (1822);
October 12th / the Day of the Apparition of the Virgin;
November 2nd / Halloween (ie the Day of the Dead);
November 15th / the founding day of the Republic (1889);
December 25th / Christmas.

Rio Carnival Images | Pixabay

  Natural resources

Resources minerals, land, forests and water resources are very rich.

The reserves of 29 minerals including niobium, manganese, titanium, bauxite, lead, tin, iron and uranium are among the top in the world. The reserves of niobium ore have been proven 5.2 million tons, and the output accounts for more than 90% of the world's total output. The proven reserves of iron ore are 33.3 billion tons, accounting for 9.8% of the world, ranking fifth in the world, and second in output. The proved reserves of oil are 15.3 billion barrels, ranking 15th in the world and second in South America (behind Venezuela). Since the end of 2007, a number of extra-large pre-salt oil and gas fields have been discovered along the coast, with an expected reserve of 50 to 150 billion barrels, which is expected to be among the top ten oil storage countries in the world.

The forest coverage rate reaches 62%, and the timber reserves are 65.8 billion cubic meters, accounting for 1/5 of the world. It is rich in hydropower resources, owning 18% of the world’s fresh water, with a per capita fresh water capacity of 29,000 cubic meters and a hydropower reserve of 143 million kilowatts per year.

  Main Industry

Industry

The industrial system is relatively complete and its strength ranks first in Latin America. In 2018, the industrial output value was 1.22 trillion reais, accounting for 17.9% of the GDP. The main industrial sectors are: iron and steel, automobiles, shipbuilding, petroleum, cement, chemicals, metallurgy, electricity, construction, textiles, shoemaking, papermaking, food, etc. The civil regional aircraft manufacturing industry and the biofuel industry are leading the world.

Since the mid-1990s, industries such as pharmaceuticals, food, plastics, electrical appliances, communication equipment, and transportation equipment have developed rapidly, and the shoe, clothing, leather, textile and machinery industries have shrunk.

Agriculture

There are more than 180 million hectares of arable land, 76.7 million hectares of arable land, 172.3 million hectares of pasture, the world's largest production of coffee, cane sugar, citrus, and kidney beans. It is the second largest producer of genetically modified crops, the largest soybean producer, and the fourth largest in the world. A large corn producer, it is also the world's largest exporter of beef and chicken. In 2019, the output of the three major crops of soybeans, corn and rice reached 113.4 million tons, 100.6 million tons and 10.26474 million tons respectively. Except for a few crops such as wheat, all major agricultural products can be self-sufficient and exported in large quantities.

Service industry

The service industry plays an important role in Brazil's economic development. It is not only the industry with the highest output value, but also the industry with the most job creation. The main sectors include real estate, leasing, tourism, finance, insurance, information, advertising, consulting and technical services. In 2018, the output value of Brazil's service industry was nearly 4.28 trillion reais, a year-on-year increase of 3.6%, accounting for 62.7% of GDP.

Tourism

The net profit of Brazil's tourism industry in 2018 was 318.7 million reais, a year-on-year increase of 27.2%. In the first half of 2019, Pakistan received approximately 2.77 million foreign tourists. Major tourist cities and attractions in the country: Rio de Janeiro, Sao Paulo, El Salvador, Brasilia, Manaus, Black Gold City, Iguazu Falls, Parana Stone Forest and Everglades.

  Infrastructure

Railway

The railway transportation capacity ranks first in Latin America. The current total length of the railway network is about 30,374 kilometers, mainly in the south, southeast and northeast of Brazil. Except for sporadic tourist routes, most of them are freight routes that transport iron ore and agricultural products.

Highway

With a total length of 1.75 million kilometers, it is responsible for more than two-thirds of the country's cargo transportation volume, including 219,000 kilometers of asphalt roads and 10,000 kilometers of expressways.

Water Transport

There are 37 ports in the country with an annual throughput of 700 million tons. Santos Port is the largest port in Brazil, with a throughput of one third of the country. The Port of Manaus, located in the middle reaches of the Amazon River, is the largest inland port that can berth 10,000-ton cargo ships.

Air Transport

There are a total of 2,498 aircraft take-offs and landings in the country, ranking second in the world, including 34 international airports with regular flights to major parts of the world. Air passenger traffic in 2018 was 103 million passengers. Sao Paulo International Airport is a national aviation hub, carrying 35 million passengers annually.

  Economic recovery is slow and GDP per capita has fallen

Brazil's GDP in 2019 was 7,256.927 billion reais, equivalent to about 1.84 trillion U.S. dollars at the time, ranking ninth in the world, with a year-on-year increase of only 1.1%, and still the largest economy in Latin America.

Brazil's GDP growth rate trend chart over the years | TRADING ECONOMICS

Based on a population of 210 million, Brazil’s per capita GDP in 2019 has dropped from US$10,000 two years ago to US$8,800.

Affected by the epidemic, the GDP growth rate in 2020 will drop sharply. Brazilian economists predict that Brazil's GDP will shrink by 5.46% in 2020. Previously, it was expected to shrink by 5.52%.

The growth of foreign exchange reserves has been weak in recent years

Brazil's foreign exchange reserves trends over the years | TRADING ECONOMICS

From 2012 to 2020, Brazil's foreign exchange reserves have grown slowly, and there has been a significant decline in 2020.

Employment population plummets in 2020, unemployment rate remains high

Brazil's employment trends over the years | TRADING ECONOMICS

From 2014 to 2019, Brazil's employment population grew slowly and weakly, and it declined significantly in 2017. In 2020, the economy suffered a sharp decline due to the epidemic, and the number of employed people plummeted.

Brazil Unemployment Rate Trends Over the Years | TRADING ECONOMICS

Since 2015, the unemployment rate in Brazil has maintained a high growth rate. In September 2020, the unemployment rate reached 14.1%.

Prices continue to rise and inflation rates fluctuate greatly

Brazil Consumer Price Index CPI Trends over the Years | TRADING ECONOMICS

From 2011 to 2020, the growth of Brazil's consumer price index CPI accelerated, and prices continued to rise.

Brazil's inflation rate trend over the years | TRADING ECONOMICS

From 2011 to 2020, Brazil's inflation rate fluctuated greatly, and it has remained low since 2017, and the economic growth rate has dropped significantly.

Corporate income tax 34%

Brazil's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Brazilian corporate income tax rate is 34%.

Personal income tax 27.5%

Brazil's personal income tax trends over the years | TRADING ECONOMICS

In 2020, Brazil's personal income tax rate is 27.5%

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