Among the countries of Latin America, Brazil holds the leadership in terms of overall economic potential. The industry of this country is important, but agriculture remains the main filler of the state budget. It employs over 20 percent of the population.
Key economic indicators of the country
Football, textiles, wheat, coffee ... What country are we talking about? Of course, about a state called Brazil! Industry and agriculture in this country are approximately equally developed, although the agricultural sector still leads in the number of employees (20% versus 13%). About 60% of the population works in the service sector.
In the 1990s, Brazil experienced a crisis in the economy, so investors were in no hurry to invest in this country. However, over time, thanks to a competent policy, the situation in the state has improved. And already at the beginning of the new millennium, all experts noted a marked growth in the Brazilian economy.
Today, Brazil, whose industry accounts for nearly 30 percent of GDP, is the No. 1 country in terms of economic potential among South American states. Despite this, about 23% of its inhabitants, according to the UN, are below the poverty line.
The country annually exports nearly $ 200 billion worth of products (imports - $ 187 billion). The main items of Brazilian exports are coffee, cars, biofuels, clothing, soy and wheat. The main partners of Brazil in the global market are: USA, China, Argentina, Germany, the Netherlands and Japan.
Brazil: industry and its location
Brazil is a country that, due to its natural features, urgently needs a competent regional policy. Thus, the territorial distribution of Brazil's industry is uneven. The contrast in economic development between the east and west of the country is striking.
The most developed region of Brazil is its southeast coast. It is here that the main financial centers of the country are located - the cities of São Paulo, Rio de Janeiro and Belo Horizonte. The city of São Paulo is often compared to a powerful locomotive that pulls the whole country.
A large agricultural region has formed in southern Brazil. The west and the center are the “wild”, often undeveloped, expanses of Brazil, where livestock production is fragmented.
Brazil: industry and its specialization
The number of people employed in Brazilian industry is declining from year to year. Today, the main industries in Brazil are:
- power engineering;
- mining industry;
- light industry;
- automobile.
In particular, the country is one of the world leaders in the production of biofuels and textiles, iron ore. This is the modern specialization of Brazilian industry.
About forty types of minerals are mined today in this country. Among them, the most important for the economy are iron and tungsten ores, gold, zirconium and bauxite. But Brazil only half meets its oil needs. Therefore, it is forced to import this energy resource.
The automotive industry of Brazil is represented by numerous enterprises of international companies Mercedes-Benz, Scania and Fiat. About one and a half million cars and buses are produced annually in the country.
Other Brazilian industries are also quite developed. We are talking about light industry (production of fabrics and shoes), the chemical industry and oil refining.
Energy and biofuel production
2756 power plants operate today in Brazil. Their total capacity is 121,226 MW. Interestingly, over 80 percent of all electricity in the country is produced at environmentally friendly hydroelectric power plants (HPPs).
Brazil provides electricity not only to itself, but also to neighboring states - Paraguay and Venezuela.
The country ranks second in the world in the production of biofuels - bioethanol. In 2006, Brazil produced almost 17 million liters of this fuel, although the technological capacities of enterprises in this country are much higher. The raw material for this purpose is sugarcane, the plantations of which are also located in Brazil. Thus, the Brazilian economy here is absolutely independent of the world market conditions: if the demand for cane sugar falls, the country instantly responds to this and produces more bioethanol.
Brazil Agriculture
In terms of agricultural production, the country is in the top three world leaders. Thus, Brazil supplies about 6% of the world's agricultural products to the world market.
Brazil is, first of all, the production of coffee, soy, corn, sugarcane , cocoa and bananas. Forestry has great development prospects in the country. But this resource has not yet been well developed: it all comes down to collecting rubber and nuts. Although for the preservation of the forests of the Amazon, this is a definite plus.
In recent years, Brazil has been collecting at least 600 million tons of cane annually. This figure is the highest in the world. Of the cereals, corn is most revered in the country: two crops of this useful crop are harvested here a year.
Livestock is about 40% of the value of all agricultural products in Brazil. It is developed in the central-western part of the country and is represented mainly by grazing.
Coffee production
Brazil is a coffee country. Perhaps everyone knows about this. For more than a century, it has maintained its leadership in the world in the production of coffee beans.
The very first coffee bushes in Brazil were planted back in 1727. According to legend, they were brought here from French Guiana. Already in the middle of the XIX century, Brazil suffered a real coffee fever. This plant not only allowed Brazil to become an important player in the global market, but also stimulated the construction of a railway network in the country. Freight trains transported coffee grains from inland areas to large ports on the shores of the Atlantic Ocean.
In 2009, the country supplied almost 2 million tons of this product to the world market, which amounted to 32% in percentage terms.
Finally
Brazil is the country with the largest economic potential in the Latin American region. The main industries here are energy, mining, chemical, automotive and light industries. Brazil's agriculture specializes in the production of coffee, the cultivation of sugarcane, soybeans and corn.