The Federative Republic of Brazil (Brazil) is the World’s seventh largest economy, the largest in Latin America and the second largest in the Southern Hemisphere. Brazil is the first business partner of Pakistan among the South American countries, and both countries enjoyed a bilateral trade of $ 368.7 million in 2015.
This country profile is part of a series of studies undertaken on South American countries by the Pakistan Business Council (PBC). This brief study aims to highlight the economic, trade and investment opportunities in Brazil.
|Population||181 M||185 M||188 M||204 M||206 M||207 M|
|GDP (Current US $)||$ 231 B||$ 243 B||$ 269 B||$ 2,465 B||$ 2,417 B||$ 1,774 B|
|GDP Per Capita||$ 1,275||$ 1,315||$ 1,429||$ 12,071||$ 11,728||$ 8,538|
|Trade Balance||– $ 18.6 B||– $ 22.8 B||– $ 21.9 B||$ 2.55 B||-$ 3.96 B||$ 19.6 B|
|FDI, Net Inflows||$ 1.33 B||$ 1.86 B||$ 979 M||$ 69.1 B||$ 96.8 B||$ 75.1 B|
Easy access to raw materials, a diversified labour force and a strategic geographic location has allowed Brazil to enjoy a trade surplus with the world over the years. In 2015, Brazil imported goods worth $ 171 billion whereas exports amounted to $ 191 billion. Major imports consisted of mineral fuels, machinery, electrical machinery and vehicles other than railways. Oil seeds and oleaginous fruits, ores, slag and ash and mineral fuels were the top three exports of Brazil in 2015.
From 2006 to 2015, Brazil has been able to enjoy a trade surplus with Pakistan. In 2015, Brazil’s top imports from Pakistan consisted of articles of apparel and clothing (knitted and not knitted), cotton and other textile articles. Brazil’s exports to Pakistan saw a sharp increase from $ 163 million in 2014 to $ 297 million in 2015. This can be attributed to the increase in exports of cotton, animal or vegetable fats and oils, and oil seeds and oleaginous fruits.
Pakistan’s bilateral trade with Brazil currently stands at a very low level. However, Brazil offers huge business opportunities to Pakistan, especially in the agricultural sector, which have not yet been properly explored by Pakistani exporters. In 2015, Pakistan had the potential to import $ 3.69 billion from Brazil whereas it had the capacity to export another $ 1.63 billion worth of goods to Brazil.
Brazil’s Ease of Doing Business Index has dropped in the past year from 111 in 2015 to 116 in 2016. With a score of 38, Brazil also has a low ranking in the Corruption Perceptions Index where a low ranking indicates a more corrupt economy. Despite this, Brazil is the largest beneficiary of FDI amongst the Latin American countries and is ranked the fifth largest beneficiary of FDI in the world.