Sao Paulo, and Consulates in Porto Alegre and Recife

Flag: green with a large yellow diamond in the center bearing a blue
celestial globe with 23 white five-pointed stars (one for each state) arranged
in the same pattern as the night sky over Brazil; the globe has a white
equatorial band with the motto ORDEM E PROGRESSO (Order and Progress)

- Economy
Overview: The economy, a mixture of private enterprises of all
sizes and extensive government intervention, experienced enormous
difficulties in the late 1980s, notably declining real growth, runaway
inflation, foreign debt obligations of more than $100 billion, and
uncertain economic policy. Government intervention includes trade and
investment restrictions, wage/price controls, interest and exchange rate
controls, and extensive tariff barriers. Ownership of major industrial
facilities is divided among private interests, the government, and
multinational companies. Ownership in agriculture likewise is varied,
with the government intervening in the politically sensitive
issues involving large landowners and the masses of poor peasants.
In consultation with the IMF, the Brazilian Government has initiated
several programs over the last few years to ameliorate the stagnation
and foreign debt problems. None of these has given more than temporary
relief. The strategy of the new Collor government is to increase
the pace of privatization, encourage foreign trade and investment,
and establish a more realistic exchange rate. One long-run strength
is the existence of vast natural resources.

GDP: $377 billion, per capita $2,500; real growth rate 3% (1989 est.)

Inflation rate (consumer prices): 1,765% (1989)

Unemployment rate: 2.5% (December 1989)

Budget: revenues $27.8 billion; expenditures $40.1 billion,
including capital expenditures of $8.8 billion (1986)

Exports: $34.2 billion (1989 est.);
commodities--coffee, metallurgical products, chemical products,
foodstuffs, iron ore, automobiles and parts;
partners--US 28%, EC 26%, Latin America 11%, Japan 6% (1987)

Imports: $18.0 billion (1989 est.);
commodities--crude oil, capital goods, chemical products, foodstuffs,
coal;
partners--Middle East and Africa 24%, EC 22%, US 21%, Latin
America 12%, Japan 6% (1987)

External debt: $109 billion (December 1989)

Industrial production: growth rate 3.2% (1989 est.)

Electricity: 52,865,000 kW capacity; 202,280 million kWh produced,
1,340 kWh per capita (1989)

Industries