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Country Commercial Guides for FY 2000: Brazil Report prepared by U.S. Embassy Brasilia, released July 1999 Note*

CHAPTER X:   ECONOMIC AND TRADE STATISTICS

APPENDIX A:   Country Data

Profile

Population:		166,113,800 million inhabitants (estimate 2000)

Population Growth Rate:	1.20 percent annually.

Religion(s): 		Predominantly Roman Catholic, with growing
			Protestant influence. 

Government System:	Democratic, Federative Republic, Presidential
			system, with executive branch agencies, two 
			houses congress (Senate, Chamber of Deputies), 
			and judicial branch.

Language(s): 		Portuguese

APPENDIX B:   Domestic Economy

				 	 1998  	   1999 1/     2000 1/

Nominal GDP (US$ bil)			 771.1       540.0   	570.1
GDP Real Growth Rate (%)          	   0.1        -1.5     	  3.0
GDP Per Capita (Current US$)           4,800  	   3,380      3,510 
Public Sector Borrowing 
Requirement as a % of GDP 	          -8.1       -10.3   	 -4.5 
Annual Inflation (%) /2                    2.5        10.0    	  4.0
Unemployment Rate (%) /3                   7.6         8.0    	  8.0
Foreign Exchange Reserves (US$ bil)     44.5   	      45.0   	 48.0
Avg. Exchange Rate (R/US$1)              1.160         1.750  	  1.880   
Foreign Debt (US$ bil)                   235.1 	     260.0 	290.0   
Debt Service/Exports (%)                  31.0        31.6   	 33.2   
US Econ/Mil Assist (US$ mil)/4            12.0        13.0   	 11.0 

Notes:

1/ 1999 = estimate; 2000 = projection
2/ Inflation as measured by the National Consumer Price Index (INPC)
produced by the Brazilian Institute of Geography and Statistics (IBGE).
3/ Open unemployment as percent of economically active workforce 4/ No military assistance; USAID figures only.

APPENDIX C:   Trade

In US$ Millions FOB

				 1998	      	1999(P)    	2000(E)	

Total Brazilian Exports		63,062		47,586		54,725    
Total Brazilian Imports		72,080		49,679		57,131

Exports to U.S. 		 9,657		11,202		12,882
Imports from US			18,161		15,538		17,869

Source:   Secretaria da Receita Federal, Ministério da Industria, Comércio e Turismo and the U.S. Department of Commerce, Census Bureau.

APPENDIX D:   Investment Statistics

Foreign direct investment statistics

FDI Stock by Country in Brazil,
Top Ten, 1997
   (US$ Millions, Percent)

COUNTRY			AMOUNT		SHARE	   GROWTH(97/98)

United States		17,210		26.3		 34.2
Germany		 	 6,266		 9.6		  3.2
Cayman Islands	 	 4,560		 7.5		218.7
France		 	 4,341		 6.5		 41.1
The Netherlands	 	 3,186		 5.4		 72.2
Japan		 	 2,426	 	 4.9	 	 12.0
Switzerland		 2,123	 	 4.6		  2.8
Virgin Islands (Br.)  	  -313	 	 3.4		  7.7
United Kingdom		 2,441	 	 3.2		  9.7
Canada		 	 1,884	 	 3.1		  3.4 
Other		 	 1,243		25.5		 29.2
 	
Total			65,507         100.0	 	 30.5

Source:   Central Bank of Brazil, Department of Foreign Capital (FIRCE), Census of Foreign Capital in Brazil, 1998

Notes:   The 1997 stock figure is based on recorded inflows during 1996 and 1997 for investments greater than $10 million in value. Figures are not strictly compatible with previously reported investment statistics. Foreign investment rankings changed significantly from 1995 to 1997. The United States remained in first place throughout but;

FDI STOCK BY SECTOR AND SELECTED SUBSECTOR,
1997 SHARE AND 1996/97 GROWTH
($ MILLIONS, PERCENT)

SECTOR			STOCK		SHARE		96/97 GROWTH
(SUBSECTOR)

AGRICULTURE		1,255	  	 1.9		 57.1

(Metallic Minerals
  Extraction)		1,055       	 1.6		196.3

INDUSTRY	       27,179		41.5		  8.1

(Chemicals)		5,338	  	 8.1		  7.4
(Autos)		 	3,360	 	 5.1		  7.1
(Food/Beverages)	2,841	  	 4.3		 12.8
(Basic Metals)		2,596	 	 4.0		  0.0
(Machinery/Equipment
 Manufacturing)	 	2,458	  	 3.8		  9.1

SERVICES	       37,072		56.7		 52.8

(Business Services)    18,822		28.7		 39.7
(Retail & Commerce)	3,002		 4.6		 29.8
(Financial
 Intermediation)	3,321	  	 4.9		212.5
(Real Estate)		1,181	 	 1.8		  3.6

TOTAL		       65,507	       100.0		 30.5

Source:   Central Bank of Brazil, Department of Foreign Capital (FIRCE), Census of Foreign Capital in Brazil, 1998

U.S. INVESTMENT TRENDS

According to U.S. Department of Commerce data, U.S. foreign direct investment (FDI) in Brazil reached US$ 35.7 billion at the end of 1997. This represented growth of 24 percent compared to 1996 and put Brazil fifth in the world in terms of the U.S. direct investment stock between Germany and Japan. Fasting growing sectors are power and telecommunications (reflecting ongoing privatizations of state enterprises), services, and banking.

U.S. FDI (defined as net financial claims of U.S. parents on foreign subsidiaries) in Brazil is dominated by manufacturing with a 64 percent share. Banking and finance account for another 16 percent of the total. U.S. investment in Brazil accounted for over half of total American FDI in South America in 1997. With respect to manufacturing investment only, FDI in Brazil was equal to 70 percent of the continental total. Available data on 1998 capital outflow (the main component of FDI flows) suggests that the investment growth rate slowed to around 7% last year and that the total increase in U.S. FDI will amount to around US$ 3 billion for the year as a whole.