Brazil's economy has been undergoing a continuous growth and development from 2004 which has led to a rise in employment and real wages. The economic system of Brazil is standing on a floating exchange rate, a regime that is inflation targeting and a compressed fiscal policy.
Brazil had to face a sharp depreciation in the currency which led to a drastic adjustment in current account from 2003 to 2006. This was followed by trade surpluses. Surplus agricultural production also led to an increase in exports.
Economy of Brazil also has weaknesses. These are mostly related to debts. Domestic debts went up from 1994 to 2003. But Brazil controlled this rise in 2006. The president has introduced economic programs to control taxes and increase public investment.
The present GDP is $1.6 trillion and the real growth rate of GDP is 3.7%. rate of unemployment is 9.6% and inflation is 3%.Major industries are textiles, shoes, chemicals, aircraft, steel, motor vehicles, etc. Agricultural products includes coffee, wheat, rice, sugarcane etc.