ctober-November
1997 that occurred in the wake of the Asian financial crisis. These
shocks caused Brazil's foreign exchange reserves to drop by $8 billion
to $52 billion and the stock market to decline by about 25%, although
it still ended up more than 30% for the year. President CARDOSO
remains committed to defending the Real Plan, but he faces several key
challenges domestically and abroad. His package of fiscal reforms
requiring constitutional amendments has progressed slowly through the
balkanized Brazilian legislature; in their absence, the government
continues to run deficits and has limited room to relax its interest
and exchange rate policies if it wants to keep inflation under
control. Some foreign investors remain concerned about the viability
of Brazil's exchange rate policy because of the country's fiscal and
current account deficits. The government thus has to contend with the
possibility of capital flight or a speculative attack that could draw
down foreign reserves to a critical level and force a devaluation.

GDP: purchasing power parity-$1.04 trillion (1997 est.)

GDP-real growth rate: 3% (1997)

GDP-per capita: purchasing power parity-$6,300 (1997 est.)

GDP-composition by sector:
agriculture: 13%
industry: 38%
services: 49% (1995)

Inflation rate-consumer price index: 4.8% (1997)

Labor force:
total: 57 million (1989 est.)
by occupation: services 42%, agriculture 31%, industry 27%

Unemployment rate: 7% (1997 est.)

Budget:
revenues: $87.5 billion
expenditures: $96 billion, including capital expenditures of $NA
(1996)

Industries: textiles, shoes, chemicals, cement, lumber, iron ore, tin,
steel, aircraft, motor vehicles and parts, other machinery and
equipment

Industrial production growth rate: 4.5% (1997 est.)

Electricity-capacity: 57.64 million kW (1995)

Electricity-production: 264.895 billion kWh (1995)
note: imported about 36.95 billion kWh of electricity from Paraguay

Electricity-consumption per capita: 1,878 kWh (1995)

Agriculture-products: coffee, soybeans, wheat, rice, corn, sugarcane,
cocoa, citrus; beef

Exports:
total value: $53 billion (f.o.b., 1997)
commodities: iron ore, soybean bran, orange juice, footwear, coffee,
motor vehicle parts
partners: EU 28%, Latin America 23%, US 20%, Argentina 12% (1996)

Imports:
total value: $61.4 billion (f.o.b., 1997)
commodities: crude oil, capital goods, chemical products, foodstuffs,
coal
partners: EU 26%, US 22%, Ar