ountries and is expanding its presence
in world markets. Having weathered 2001-03 financial turmoil,
capital inflows are regaining strength and the currency has resumed
appreciating. The appreciation has slowed export volume growth, but
since 2004, Brazil's growth has yielded increases in employment and
real wages. The resilience in the economy stems from
commodity-driven current account surpluses, and sound macroeconomic
policies that have bolstered international reserves to historically
high levels, reduced public debt, and allowed a significant decline
in real interest rates. A floating exchange rate, an
inflation-targeting regime, and a tight fiscal policy are the three
pillars of the economic program. From 2003 to 2007, Brazil ran
record trade surpluses and recorded its first current account
surpluses since 1992. Productivity gains coupled with high commodity
prices contributed to the surge in exports. Brazil improved its debt
profile in 2006 by shifting its debt burden toward real denominated
and domestically held instruments. "LULA" DA SILVA restated his
commitment to fiscal responsibility by maintaining the country's
primary surplus during the 2006 election. Following his second
inauguration, "LULA" DA SILVA announced a package of further
economic reforms to reduce taxes and increase investment in
infrastructure. The government's goal of achieving strong growth
while reducing the debt burden is likely to create inflationary
pressures.

GDP (purchasing power parity):

$1.849 trillion (2007 est.)

GDP (official exchange rate):

$1.314 trillion (2007 est.)

GDP - real growth rate:

5.4% (2007 est.)

GDP - per capita (PPP):

$9,500 (2007 est.)

GDP - composition by sector:

agriculture: 5.5%
industry: 28.7%
services: 65.8% (2007 est.)

Labor force:

99.23 million (2007 est.)

Labor force - by occupation:

agriculture: 20%
industry: 14%
services: 66% (2003 est.)

Unemployment rate:

9.3% (2007 est.)

Population below poverty line:

31% (2005)

Household income or consumption by percentage share:

lowest 10%: 0.9%
highest 10%: 44.8% (2004)

Distribution of family income - Gini index:

56.7 (2005)

Investment (gross fixed):

17.6% of GDP (2007 est.)

Budget:

revenues: $244 billion
expenditures: $219.9 billion (FY07)

Fiscal year:

calendar year

Public debt:

45.1% of GDP (2007 est.)

Inflation rate (consumer prices):

3.6% (2007 e