Charting Brazil's Economy

|
Includes: BBD, BZF, EWZ, ITUB
by: David Hunkar

Emerging markets are once again the hot destination for investors. Brazil continues to be a favorite destination for foreign capital. The central bank of Brazil, Banco Central Do Brasil, recently released “Brazil’s Economic Chart Pack” showing a snapshot of the current state of the economy.

Some of the interesting charts are presented below:

1. The Public Sector Net Debt trend is down. In 1Q 2009, net debt stood at 37.6% of GDP.

Brazil-Debt

2. Brazil has a trade surplus as shown in the chart below:

Brazil Trade

3. More than half of Brazil’s exports are for emerging market countries. The U.S. accounts for just 13.2% of Brazil’s exports.

brazil-trade

4. Only about 40% of exports are primary goods, which consist of iron ore, food, oil and tobacco. Manufactured goods total about 45%. These include buses, cars, tractors, planes, etc. Hence contrary to popular belief, Brazil is not just a commodity exporter. Nearly half of all exports are finished products.

Brazil-Exports

5. Unlike in the U.S. and Western Europe, credit growth is actually higher this year in Brazil. Consumers and Corporates increased credit by 18.7% and 22.7% respectively year-over-year for April this year.

Brazil Credit Growth

Source: Banco Central Do Brasil

Related:

ETF: iShares MSCI Brazil Index (NYSEARCA:EWZ)
Banco Bradesco (NYSE:BBD)
Itau Unibanco Holding SA (NYSE:ITUB)