Walking a fiscal and political tightrope

B3

SENSITIVE RISK

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in September 2021.

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GDP USD 1609bn (World ranking 12, World Bank 2021)
Population 214 mn (World ranking 6, World Bank 2021)
Form of state Presidential republic
Head of state Luiz Inácio Lula da Silva (President)
Next elections 2026, presidential and legislative
  • Important role on an international and regional scale
  • Diversified economy
  • Growing middle class
  • Robust foreign direct investment inflows, high level of foreign exchange reserves and low external debt
  • Support for IFIs likely if needed
  • Vulnerable to global commodity prices
  • High production costs
  • High taxation and red tape ("Brazil cost")
  • Large fiscal deficits and increasing public debt
  • Political and social tensions on the back of corruption and high income inequality

Trade structure by destination/origin

(% of total, annual 2021)

Exports Rank Imports
China 31.3%
1
22.8% China
United States 11.2%
2
17.7% United States
Argentina 4.2%
3
5.3% Argentina
Netherlands 3.3%
4
5.1% Germany
Chile 2.5%
5
3.1% India

Trade structure by product

(% of total, annual 2021)

Exports Rank Imports
Metalliferous ores and metal scrap 18.7%
1
8.4% Electrical machinery, apparatus and appliances, n.e.s.
Oil seeds and oleaginous fruits 13.9%
2
8.1% Petroleum, petroleum products and related materials
Petroleum, petroleum products and related materials 13.6%
3
7.1% Fertilizers other than group 272
Meat and meat preparations 7.0%
4
6.4% Road vehicles
Iron and steel 5.2%
5
5.7% Organic chemicals
The Allianz Trade Collection Complexity Score provides a simple assessment of how easy it is to collect debt around the world. The 2022 edition covers 49 countries that represent nearly 90% of global GDP and 85% of global trade.
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