World Grain - December 2018 - 20

COUNTRY FOCUS

Focus on Brazil
Largest soybean exporter filling void
during U.S.-China trade war
by Chris Lyddon

Brazil is one of the world's biggest agricultural exporters, with
the focus on its massive soybean crop as well as a large corn
crop. A weak currency has helped Brazilian exporters remain
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grains production in 2018-19 at 103.8 million tonnes, up from
88.2 million the year before. Production of wheat is put at 5.4
million tonnes, up from 4.3 million the previous year, while the
corn crop is put at 95.1 million tonnes, up from 80.8 million the
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1.9 million tonnes, down from 2.1 million the prior year.
Brazil's total grains exports in 2018-19 are forecast by the
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down from 8.3 million the year before. Wheat is its biggest
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year. Brazil's wheat exports are put at an
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are put at 24.5 million tonnes in 2018-19,
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compared with 31.2 million the previous
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year, while imports of corn are forecast to
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lion tonnes in 2018-19, compared with 8
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rice exports are forecast at 800,000 tonnes, down from
1 million the prior year.
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forecasting its 2018-19 crop at 121 million tonnes, up from
119.3 million the year before. Brazil's exports of soybeans in
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million the previous year. Brazil also is expected to export 15.6
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20

Key Facts
Capital: Brasilia
Population: 208,846,892 (July 2018 est.)
Religions: Roman Catholic 64.6%, other Catholic 0.4%,
Protestant 22.2% (includes Adventist 6.5%, Assembly of
God 2.0%, Christian Congregation of Brazil 1.2%, Universal Kingdom of God 1.0%, other Protestant 11.5%), other
Christian 0.7%, Spiritist 2.2%, other 1.4%, none 8%, unspecified 0.4% (2010 est.).
Location: Eastern South America, bordering the Atlantic
Ocean.
Government: Federal presidential republic. Chief of state
and head of government: President Michel Miguel Elias
(since Aug. 31, 2016).
Economy: Brazil is the eighth-largest economy in the world
but is recovering from a recession in 2015 and 2016 that
ranks as the worst in the country's history. In 2017, Brazil`s
GDP grew 1%, inflation fell to historic lows of 2.9%, and
the Central Bank lowered benchmark interest rates from
13.75% in 2016 to 7%. The economy has been negatively
affected by multiple corruption scandals involving private
companies and government officials, including the impeachment and conviction of Former President Dilma Rousseff
in August 2016. Sanctions against the firms involved have
limited their business opportunities, producing a ripple effect on associated businesses and contractors but creating
opportunities for foreign companies to step into what had
been a closed market. The succeeding Temer administration
has implemented a series of fiscal and structural reforms
to restore credibility to government finances. Congress approved legislation in December 2016 to cap public spending. Government spending growth had pushed public debt
to 73.7% of GDP at the end of 2017, up from over 50%
in 2012. The government also boosted infrastructure projects, such as oil and natural gas auctions, in part to raise
revenues. Other economic reforms aim to reduce barriers to
foreign investment, and to improve labor conditions. Policies
to strengthen Brazil's workforce and industrial sector, such
as local content requirements, have boosted employment,
but at the expense of investment. Brazil is a member of the
Common Market of the South (Mercosur), a trade bloc that
includes Argentina, Paraguay and Uruguay. After the Asian
and Russian financial crises, Mercosur adopted a protectionist stance to guard against exposure to volatile foreign markets and it currently is negotiating Free Trade Agreements
with the European Union and Canada.
GDP per capita: $15,600 (2017 est.); inflation: 3.4%
(2017 est.); unemployment: 12.8% (2017 est.).
Currency: Reals (BRL): 3.761 reals equal 1 U.S. dollar (Nov.
19, 2018).
Exports: $217.2 billion (2017 est.): transport equipment,
iron ore, soybeans, footwear, coffee, automobiles.
Imports: $153.2 billion (2017 est.): machinery, electrical
and transport equipment, chemical products, oil, automotive
parts, electronics.
Agriculture: 6.6% (2017 est.) of GDP and 58.5% (2017
est.) of the labor force.
Internet: Code: .br; 122,841,218 (July 2016 est.) users.
Source: CIA World Factbook

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