Brazil is endowed with both an abundance of natural resources and people. How Brazil earns its income depends on the country's management and development strategies. Brazil ranked as the eleventh largest economy in the world in 2022.

GDP vs. GDP Per Capita

In 2022, Brazil's GDP was USD 1.9 trillion. Yet, considering Brazil’s total population, approximately 215.3 million in 2022, the average Brazilian income or 澳洲幸运5官方开奖结果体彩网:GDP per capita was only USD 8,900. Brazil’s income is relatively large compared to the income of its workforce, estimated at 108 million individuals.

Sources of Brazil’s Income

Brazil’s income is derived from the followin♛g three sectors: agriculture, industry🐈, and services including revenue generated from:

• Coffee
• Soybeans
• Wheat
• Sugarcane
• Textiles
• Chemicals
• Cement
• Aircraft, motor vehicles, and parts

The comprises hospitality, finance, IT BPO, retail sales, and personal services. Sectors supply goods and services to both domestic and foreign consumers. In turn, the spending from these consumers results in income for Brazil’s workers. Domestic consumption is responsible for supplying Brazil’s workforce with income. The country’s total exports comprised around 20% of GDP in 2022.

Foreign and Domestic Demand

Since the 2000s, China has been Brazil’s leading foreign consumer, benefiting Brazil’s exports, the of which increased from nearly 2% in 2000 to 32.4% in 2020. Brazil’s economic climate during this time also helped attract , leading to an enormous expansion of consumer credit. Domestic consumption rose significantly as increased from 20% of personal income to 51% between 2005 and 2020. However, it's important to note that this rate is still among the lo🎀west compared to other major countries. It's also important to note that as of October 2023, this is st❀ill the most recent number published.

Government spending helped fuel consumption growth. Spending from the increased between 2001 and 2021 from 15.7% of GDP to around 40%. As of September 2023, forecasts show a decline between 2024 and 2028, concluding with GDP below 40% in 2028.

Imports and Exports

According to available data, in 2021, Brazil exported a total of $288 billion worth of goods. Among the top goods exported, Brazil set $46.2 billion of iron ore, $39 billion of coffee, and $30.7 billion of crude petroleum oil. Brazil imported $225 billion of goods in 2021, led, by $13.1 billion of refined petroleum, $7.58 billion of motor vehicle parts/accessories, and $6.4 billion of vaccines.

Brazil's favorite trading partner in 2021 was China, sending $88.3 billion of goods overseas. Brazil also sent $30.2 billion of goods to the United States and $12 billion to Argentina. These same players are prominent in Brazil's imports, taking three of the top four spots. Brazil imported $53.8 billion from China, $39.3 billion from the United States, $12.4 billion from Germany, and $11.2 billion from Argentina.

Tourism

Brazil relies on tourism as a source of income. The country reported over 6.6 million tourist arrivals in 2018 and over 6.3 million in 2019. Due to COVID-19 global shutdowns and travel restrictions, the country only saw 2.1 million tourists in 2020 and 746,000 in 2021. According to the Brazilian government, the tourism sector grew by 85.7% compared to the same period in 2021, with accumulated growth in 2022 of 51.3%.

Improving Income Growth

Based on a low GDP per capita, Brazil can strategize to increase productivity and boost its international competitiveness. A ranked Brazil 15^th among 16 peer nations.

Development improvemenꦚts may include increasing investment, promoting closer integration with major markets, upgrading infrastructure to connect Brazil to the rest of the world, lowering regulatory costs, improving public sector efficiency, and improving education and training.

Brazil's 2022 real GDP as a percentage of annual year-over-year growth was 2.9%. However, the IMF forecasts Brazil's GDP to grow just 0.9% in 2023 and 1.5% in 2024. The IMF expects about half as much growth in 2024 for all Latin American and Caribbean countries in 2024 compared to 2022.

The Bottom Line

Brazil has an abundance of natural resources and labor and the fundamental components to make money and sustain a growing economy. However, the country's per capita GDP is significantly lower than Brazil's GDP, which questions the strategies and management used to maintain the growth of the country.