Brazil: Economy

Brazil has the largest economy in South America and the ninth largest in the world. However, income distribution is highly unequal and poverty affects more than one-third of the total population. Unequal land distribution is a contributing factor: nearly half of all private lands are owned by only 1 percent of the people. Many of the landless live in favelas (shantytowns) on the outskirts of urban centers.

Brazil is largely self-sufficient in food and consumer goods. Agriculture employs about 30 percent of the population. Brazil is the world's largest producer of coffee, oranges, and bananas. It also is a major producer of soybeans, corn, cocoa, beef, pork, and rice. Much of Brazil's sugarcane is used to produce ethyl alcohol, a fuel used in more than 1.5 million Brazilian cars. The industrial sector exports automobiles and parts, textiles, minerals, iron ore, steel, and metals; other industries include cement and chemicals. Natural resources include gold, nickel, tin, timber, and oil. Hydroelectric dams generate most of their electric power. Brazil is a member of Mercosur, a regional free-trade pact that includes Argentina, Paraguay, and Uruguay.

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