Brazil has a large and growing economy with a population of 191 million. It has experienced steady economic growth in recent decades and macroeconomic stability. Exports have increased substantially and now include manufactured goods, though the country still relies heavily on primary commodities. The financial system has also expanded and become more sophisticated in recent years.

1. Brazil
Economic and
Financial Sector Overview
July 2012

2. 2
• General Overview – Demographics,
Macroeconomic Policy and Social Development
• Recent Economic Indicators
• National Financial System
• Prudential Regulation and Supervision
• Credit
• Financial Inclusion
• Investments
Index

3. 3
General Overview
Demographics
Macroeconomic Policy
Social Development

4. 4
• Brazil is among the largest countries in
terms of territory, population and GDP
• Brazil has vast natural resources,
including recently discovered large
offshore oil fields, a diverse industrial
base, a dynamic and sophisticated
private sector, and a well-structured
public sector
• Brazil is a vigorous democracy, with free
multiparty elections and a stable political
system
• Brazil has good relations with all its
neighbors and has increased its ties with
all regions of the world
Sources: IBGE / BCB
Brazil Demographics
General Overview
• 6th largest GDP: US$ 2,475 billion (2011)
• Continental country: 5th largest area
8,514,877 km2
• 5th largest population: 191 million people
(2010)

5. 5
• Sources: IBGE / UN
Sources: IBGE / UN
Demographics
General Overview
Dependency RatioPopulation Pyramid (2010)
Note: The dependency ratio is the ratio of the sum of the population
aged 0-14 and that aged 65+ to the population aged 15-64
• Brazil’s dependency ratio is still
declining, while other countries already
face an upward trend
• Brazil’s population is highly concentrated
within the Economically Active
Population range
-10 -5 0 5 10
0-4
10-14
20-24
30-34
40-44
50-54
60-64
70-74
80-84
90-94
100+
millions of people
men women
25
50
75
100
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
Brazil China India Russia

6. 6
• Main features of the macroeconomic policy framework:
- Inflation targeting
- Fiscal responsibility
- Exchange rate flexibility
• The macroeconomic fundamentals, combined with
adequate prudential policy and strong bank supervision,
resulted in:
- Capacity to absorb internal and external shocks
- Macroeconomic and financial stability
- Sustainable growth
- Credit and capital market development
- Investment growth
Macroeconomic Policy
General Overview

7. 7Sources: BCB / IBGE
GDP Real Growth
General Overview
-4.4
1.0
-0.5
4.9
5.9
4.2
2.2
3.4
0.0 0.3
4.3
1.3
2.7
1.1
5.7
3.2
4.0
6.1
5.2
-0.3
7.5
2.7 2.5
-6
-4
-2
0
2
4
6
8
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
%
*Forecast from Central Bank of Brazil (Inflation Report – Jun 12)

8. 8Sources: BCB / IBGE
GDP
General Overview
0
500
1,000
1,500
2,000
2,500
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
US$billion
US$ 2,349
*Forecast from Central Bank of Brazil (Inflation Report – Jun 12)

9. 9Sources: BCB / IBGE
GDP per Capita
General Overview
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000 1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
US$
US$ 11,954
*Forecast from Central Bank of Brazil (Inflation Report – Jun 12)

10. 10Source: IBGE
GDP Growth
General Overview
Annual growth (%)
GDP Household
consumption
Government
purchases
Gross fixed capital
formation
Exports (goods
and services)
Imports (goods
and services)
1Q 07 5.2 6.2 4.9 9.3 5.7 20.2
2Q 07 5.8 6.1 6.3 11.7 9.3 19.2
3Q 07 5.9 5.9 6.4 13.2 6.2 19.3
4Q 07 6.1 6.1 5.1 13.9 6.2 19.9
1Q 08 6.3 5.9 4.7 14.9 -1.7 14.3
2Q 08 6.4 6.2 3.1 15.7 2.3 18.1
3Q 08 6.6 6.7 3.8 16.9 2.8 18.6
4Q 08 5.2 5.7 3.2 13.6 0.5 15.4
1Q 09 -2.7 2.3 3.4 -13.6 -14.0 -13.9
2Q 09 -2.5 2.7 3.0 -13.6 -11.7 -13.5
3Q 09 -2.2 3.4 2.1 -11.9 -10.9 -12.7
4Q 09 -0.3 4.4 3.1 -6.7 -9.1 -7.6
1Q 10 9.3 8.5 3.1 29.9 15.4 40.6
2Q 10 9.0 7.3 4.6 28.5 10.7 39.6
3Q 10 8.3 6.8 4.8 25.4 10.9 39.8
4Q 10 7.5 6.9 4.2 21.3 11.5 35.8
1Q 11 4.2 6.0 1.8 8.8 4.0 13.4
2Q 11 3.8 5.8 2.7 7.5 5.2 14.1
3Q 11 3.2 4.8 2.2 5.7 4.8 11.0
4Q 11 2.7 4.1 1.9 4.7 4.5 9.7
1Q 12 1.9 3.2 2.3 2.1 5.1 8.2

11. 11Source: IBGE
Unemployment Rate
General Overview
%(seasonallyadjusted)
5
6
7
8
9
10
11
12
13
14
Jan03
Jan04
Jan05
Jan06
Jan07
Jan08
Jan09
Jan10
Jan11
Jan12
May 12
5.4%
up to May 12

12. 12Source: IBGE
Share of Formal Jobs
General Overview
shareofformaljobs(%)
54
56
58
60
62
64
66
68
Jan04
Jan05
Jan06
Jan07
Jan08
Jan09
Jan10
Jan11
Jan12
up to May 12

13. 13Sources: BCB / IBGE
Inflation – Convergence to Target
General Overview
%,yoy
target (4.5%)
*Forecast from Central Bank of Brazil (Inflation Report – Jun 12)
reference
scenario*
0
2
4
6
8
10 Jan04
Jan05
Jan06
Jan07
Jan08
Jan09
Jan10
Jan11
Jan12
Jan13
Jan14

14. 14
0
5
10
15
20
25 Jan02
Jan03
Jan04
Jan05
Jan06
Jan07
Jan08
Jan09
Jan10
Jan11
Jan12
Sources: BM&FBovespa / BCB
Real Interest Rate
General Overview
%annual
Jul 13th
1.7%
360-day market rate discounted by the IPCA expected for the next 12 months (Focus)
up to Jul 13th

15. 15Source: BCB
Net Public Debt
General Overview
%ofGDP
52.0
60.4
54.8
50.6
48.4
47.3
45.5
38.5
42.1
39.1
36.4
35.0
20
25
30
35
40
45
50
55
60
65
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
*May 12
-25.4 p.p.
of GDP

16. 16Source: BCB
Federal Securities - Breakdown
General Overview
* does not include securities held by the Central Bank
Composition of total federal security debt (%)*
2004 2005 2006 2007 2008 2009 2010 2011 2012**
Fixed rate 20.1 27.9 36.1 37.3 32.2 33.7 37.9 38.3 39.2
Price linked 14.9 15.5 22.5 26.3 29.3 28.6 28.1 29.6 33.2
Selic linked 52.4 53.3 40.2 36.6 33.6 35.8 32.5 30.9 26.0
Exchange rate 9.9 1.2 -1.1 -2.3 3.3 0.7 0.6 0.4 0.8
Other 2.7 2.1 2.2 2.1 1.6 1.2 0.8 0.8 0.7
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
** May 12

17. 17
Trade Balance – Exports and Imports
General Overview
US$billion
Source: MDIC
55
58 60
73
96
118
138
161
198
153
202
256 255
56 56
47 48
63
74
91
121
173
128
182
226 231
0
30
60
90
120
150
180
210
240
270
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
exports imports *12 months up to Jun

18. 18Source: MDIC
Trade Balance
General Overview
US$billion
*12 months up to Jun
-0.7
2.7
13.1
24.8
33.6
44.7
46.5
40.0
25.0 25.3
20.1
29.8
23.9
-10
0
10
20
30
40
50
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*

19. 19Source: MDIC
Exports in 2011
General Overview
Composition Destination
Primary
Products
48.8%
Manufactured
Products
36.8%
Semi-
Manufactured
products
14.4%
US
10.1%
EU***
17.1%
Germany
3.5%
Asia**
12.6%
China
17.3%
Latin America
& Caribbean*
13.5%
Argentina
8.9%
Others
16.9%
* excluded Argentina
** excluded China and Middle East
*** excluded Germany

20. 20Source: MDIC
Exports
General Overview
Annual Exports (US$ billion)
primary semimanufactured manufaturactured others
2000 12.6 8.5 32.6 1.5
2001 15.3 8.2 33.0 1.7
2002 17.0 9.0 33.1 1.4
2003 21.2 10.9 39.8 1.3
2004 28.5 13.4 53.1 1.6
2005 34.7 16.0 65.4 2.5
2006 40.3 19.5 75.0 3.0
2007 51.6 21.8 83.9 3.3
2008 73.0 27.1 92.7 5.2
2009 62.0 20.5 67.3 3.2
2010 90.0 28.2 79.6 4.1
2011 122.5 36.0 92.3 5.3

21. 21Source: MDIC
Imports
General Overview
Annual Imports (US$ billion)
durable goods non durable
goods
primary and
intermediate
goods
capital goods fuel and
lubricants
2000 3.4 3.9 28.6 13.6 6.4
2001 3.5 3.6 27.4 14.8 6.3
2002 2.5 3.4 23.5 11.6 6.2
2003 2.4 3.1 25.8 10.4 6.6
2004 3.2 3.7 33.5 12.1 10.3
2005 3.9 4.5 37.8 15.4 11.9
2006 6.1 5.9 45.3 18.9 15.2
2007 8.3 7.8 59.4 25.1 20.1
2008 12.7 9.8 83.1 35.9 31.5
2009 11.6 9.9 59.8 29.7 16.7
2010 18.6 12.8 84.0 41.0 25.3
2011 24.1 16.0 102.1 47.9 36.2

22. 22
Current Account
General Overview
US$billion
Source: BCB
-16.3
-6.8
0.1
-0.2
-5.3
-1.4
4.2
1.0
-3.8
-1.4
6.1
-0.7-1.8
-18.4
-23.5
-30.5
-33.4
-25.3-24.2 -24.2
-23.2
4.2
11.7
14.013.6
1.6
-28.2
-24.3
-47.3
-52.5
-50.9
-60
-50
-40
-30
-20
-10
0
10
20 1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*
*May 12 (12 months)

23. 23Source: BCB
Current Account
General Overview
%ofGDP
-6.0
-3.6
0.1
-0.1
-2.1
-0.5
1.4
0.3
-0.8
-0.4
1.6
-0.2
-0.3
-2.4
-2.8
-3.5
-4.0
-4.3
-3.8
-4.2
-1.5
0.8
1.8
1.6
1.3
0.1
-1.7
-1.5
-2.2-2.1-2.1
-7
-6
-5
-4
-3
-2
-1
0
1
2 1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*
*May 12 (12 months)

24. 24Source: BCB
Foreign Direct Investment
General Overview
US$billion
3.1
1.3 1.5 1.4 0.3 1.2
2.8
1.1 1.0 1.1 2.1 1.3 2.1
4.4
10.8
19.0
28.928.6
32.8
22.5
16.6
10.1
18.1
15.1
18.8
34.6
45.1
25.9
48.5
66.7
63.0
0
10
20
30
40
50
60
70
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*
*May 12 (12 months)

25. 25Source: BCB
Foreign Direct Investment / GDP
General Overview
%ofGDP
1.1
0.7 0.8
0.7
0.1
0.4
0.9
0.3 0.2 0.3
0.5
0.3 0.4
0.6
1.3
2.2
3.4
4.9
5.1
4.1
3.3
1.8
2.7
1.7 1.7
2.5
2.7
1.6
2.3
2.7 2.6
0
1
2
3
4
5
6
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*
*May 12 (12 months)

26. 26Source: BCB
FDI (-) Current Account Deficit
General Overview
%ofGDP
-0.6
-0.1
2.1
0.1 0.1
-1.8
-1.5
-1.3
-0.5
0.6
1.3
-0.1
1.8
2.6
4.5
3.3
3.0
2.6
1.0
0.1 0.1
0.6 0.5
-2
-1
0
1
2
3
4
5 1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
*May 12 (12 months)

27. 27Source: BCB
External Liability – Debt vs Equity
General Overview
10
20
30
40
50
60
70
80
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
debt equity
%oftotalexternalliability
*May 12

28. 28Source: BCB
External Liability – Interest vs Profits
General Overview
0
5
10
15
20
25
30
35
40
45
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
profit remittances interest payments
US$billion
*May 12 (12 months)

29. 29Source: BCB
Interventions and Exchange Rate
General Overview
US$billion
BRL/US$
up to Jun 12
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
-10
-5
0
5
10
15
20 Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
interventions (LHS) exchange rate (RHS)

30. 30Source: BCB
International Reserves
General Overview
US$billion
4 5
12 12 7 7 9 10 10 9
24
32 39
52
60
52
45
36 33 36 38
49 53 54
86
180
194
239
289
352
375
0
50
100
150
200
250
300
350
400 1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*
as of Jul 18th

31. 31Source: BCB
International Reserves
General Overview
%ofGDP
13.2
11.7
14.7
13.5
14.2
15.4
0
2
4
6
8
10
12
14
16
2007
2008
2009
2010
2011
2012*
*May 12

32. 32
International Reserves (Dec 2011)
General Overview
Sources: BCB / IMF
12.9
14.2
16.9
17.7
22.1
25.5
26.9
27.4
30.8
34.8
43.6
50.7
91.5
117.3
Mexico*
Brazil
Chile
India
Japan
Denmark
Russia
Korea*
Israel
Hungary
China
Thailand
Singapore
Hong Kong
*IMF estimates
%ofGDP

33. 33Source: BCB
Net External Debt
General Overview
US$billion
*estimate May 12
79
87 88 92
103106
96 97
105 108
100 99
88 92
101
131
182190 190
163 165
151
136
101
75
-12
-28
-62
-51
-73
-96-110
-70
-30
10
50
90
130
170
210 1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*

34. 34Source: BCB
External Debt Ratios
General Overview
120.6%
63.4%
38.8%
20.4%
17.3%
12.3%
0
20
40
60
80
100
120
140
short term debt/intl.
reserves
debt services/exports external debt/GDP
Dec 03 May 12*
%
*estimate

35. 35Sources: Moody’s / S&P / Fitch
Brazilian Sovereign Ratings
General Overview
5
6
7
8
9
10
11
12
13
14 1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Moody's S&P Fitch
Investment grade
upgrades in 2011:
• April: Fitch
• June: Moody’s
• November: S&P
A3 / A-
Baa1 / BBB+
Baa2 / BBB
Baa3 / BBB-
Ba1 / BB+
Ba2 / BB
Ba3 / BB-
B1 / B+
B2 / B
B3 / B-

36. 36Sources: National Treasury / Bloomberg
Public External Debt: Yield
General Overview
External debt federal bonds
5.0
4.5
4.2
3.4
2.5
0
1
2
3
4
5
6
Apr10
Jul10
Jul11
Jan12
current*
%p.a.
%p.a.
Global 2021 Global 2041
5.8
5.2
4.7
4.0
0
1
2
3
4
5
6
Sep09
Sep10
Nov11
current*
*Jul 15th

37. 37
Main Economic Indicators
General Overview
2004 2005 2006 2007 2008 2009 2010 2011 2012
Gross Domestic Product
GDP (USD bn) 663.8 882.4 1,088.8 1,366.5 1,650.9 1,625.6 2,143.9 2,475.1 2,349.3/1
GDP (USD per capita) 3,665.2 4,812.0 5,867.3 7,282.7 8,706.7 8,489.8 11,093.9 12,696.1 11,953.9/1
Real GDP (growth rate) 5.7 3.2 4.0 6.1 5.2 (0.3) 7.5 2.7 2.5/1
Household consumption 3.8 4.5 5.2 6.1 5.7 4.4 6.9 4.1 3.5/1
Gross fixed capital formation 9.1 3.6 9.8 13.9 13.6 (6.7) 21.3 4.7 1.0/1
Economic Activity
Unemployment rate (annual average) 11.5 9.9 10.0 9.3 7.9 8.1 6.7 6.0 5.8 /2
Real payroll (growth rate) 1.6 4.2 5.9 5.8 6.9 3.9 7.4 4.8 5.1 /2
Industrial production (growth rate) 8.3 3.1 2.8 6.0 3.1 (7.4) 10.5 0.3 -1.8 /2
Consumer price index (% yoy) 7.6 5.7 3.1 4.5 5.9 4.3 5.9 6.5 4.9 /5
Fiscal (consolidated public sector. % of GDP)
Primary balance 3.7 3.8 3.2 3.3 3.4 2.0 2.7 3.1 3.0/2
Public sector net debt 50.6 48.4 47.3 45.5 38.5 42.1 39.1 36.4 35.0/4
Balance of Payments
Exports (USD bn) 96.7 118.5 137.8 160.6 197.9 153.0 201.9 256.0 258.0/1
Imports (USD bn) (62.8) (73.6) (91.4) (120.6) (173.0) (127.7) (181.7) (226.2) (240.0) /1
Current account (USD bn) 11.7 14.0 13.6 1.6 (28.2) (24.3) (47.4) (52.5) (56.0) /1
Current account (% of GDP) 1.8 1.6 1.3 0.1 (1.7) (1.5) (2.2) (2.1) (2.4) /1
Foreign direct investment (USD bn) 18.1 15.1 18.8 34.6 45.1 25.9 48.4 66.7 50.0/1
Foreign direct investment (% of GDP) 2.7 1.7 1.8 2.5 2.8 1.6 2.3 2.7 2.1/1
International reserves (USD bn) 52.9 53.8 85.8 180.3 193.8 238.5 288.6 352.0 375.1/3
/1 Central Bank forecast /4 in May 12
/2 12 months until May 12 /5 12 months until Jun 12
/3 on Jul 18th

38. 38
• Both macroeconomic and inclusion
policies have led to marked improvement
in living conditions
• A significant share of low income groups
joined the middle class
Social Development
General Overview

39. 39Source: IBGE
Gini Index – Income Inequality
General Overview
0.51
0.52
0.53
0.54
0.55
0.56
0.57
20
22
24
26
28
30
32
34
36
2001
2002
2003
2004
2005
2006
2007
2008
2009
Poverty headcount ratio below poverty line (LHS) Gini Index (RHS)
%ofpopulation
index(0to1)

40. 40Source: FGV
Social Mobility
General Overview
49
25
17
47
39
32
66
105
118
13
23 29
0
50
100
150
200
2003 2011 2014*
E D C A/B
millionsofpeople
Social Classes
*FGV forecast

41. 41Source: FGV
Social Mobility
General Overview
Social Classes (% composition)
2003 2011 2014*
A/B 7.6 11.8 14.9
C 37.6 55.1 60.2
D 26.7 20.3 16.4
E 28.1 12.9 8.6
Total 100.0 100.0 100.0
*FGV forecast

42. 42Sources: IBGE / FGV
Per Capita Income Growth (Per Percentile)
General Overview
6.8%
6.1%
5.8%
5.3%
4.8%
4.5%
3.9%
3.2%
2.4%
1.5%
0 1 2 3 4 5 6 7 8
10
20
30
40
50
60
70
80
90
100
Higher Income
Lower Income
annual average 2001-2009

43. 43
Recent Economic
Indicators

44. 44Source: IBGE
Industrial Production
Recent Economic Indicators
2007=100
80
85
90
95
100
105
110
115
120
125 Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
industrial production capital goods
May 12 / Apr 12
-0.9%
seasonally adjusted
up to May 12
May 12 / Apr 12
-1.8%

45. 45Source: FGV
Industrial Confidence
Recent Economic Indicators
s.a.index(100=indifference)
70
80
90
100
110
120
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
up to Jun 12

46. 46Source: Markit
Industrial Activity (PMI)
Recent Economic Indicators
s.a.index(50=indifference)
36
40
44
48
52
56
60
Mar07
Sep07
Mar08
Sep08
Mar09
Sep09
Mar10
Sep10
Mar11
Sep11
Mar12
up to Jun 12

47. 47Source: FGV
Industrial Capacity Utilization
Recent Economic Indicators
%
76
78
80
82
84
86
88
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
historical
average
Jun 12
83.8
up to Jun 12
seasonally adjusted

48. 48Source: IBGE
Retail Sales
Recent Economic Indicators
90
100
110
120
130
140
150
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
retail sales retail sales (incl. automobiles and construction materials)
May 12 / Apr 12
-0.8%
May 12 / Apr 12
-0.7%
2007=100
seasonally adjusted
up to May 12

49. 49Source: FGV
Confidence in Commerce
Recent Economic Indicators
index(100=indifference)
95
100
105
110
115
120
125
130
135
140
Mar10
May10
Jul10
Sep10
Nov10
Jan11
Mar11
May11
Jul11
Sep11
Nov11
Jan12
Mar12
May12
up to Jun 12

50. 50Source: FGV
Confidence in Services
Recent Economic Indicators
index(100=indifference)
up to Jun 12
95
100
105
110
115
120
125
130
135
140
Aug08
Feb09
Aug09
Feb10
Aug10
Feb11
Aug11
Feb12

51. 51Source: IBGE
Industrial Production vs. Retail Sales
Recent Economic Indicators
2007=100
80
90
100
110
120
130
140
150 Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
industrial production expanded retail sales (incl. automobiles and construction inputs)
May 12 / Apr 12
-0.9%
May 12 / Apr 12
-0.7%
seasonally adjusted
data up to May 12

52. 52Source: FGV
Consumer Confidence
Recent Economic Indicators
Sep05=100
90
95
100
105
110
115
120
125
130 Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
historical
average
seasonally adjusted
Jun 12
123.5
up to Jun 12

53. 53Source: IBGE
Unemployment Rate
Recent Economic Indicators
%
5.8
4
5
6
7
8
9
10
11 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2007 2008 2009 2010 2011 2012

54. 54Sources: BCB / IBGE
IBC-Br
Recent Economic Indicators
%
May 12
1.4
1.9
2.5
5.3
7.6 7.5
6.3
4.9
3.7
2.7
-1
0
1
2
3
4
5
6
7
8
Jan10
Mar10
May10
Jul10
Sep10
Nov10
Jan11
Mar11
May11
Jul11
Sep11
Nov11
Jan12
Mar12
May12
IBC-Br in 12 months GDP in 12 months
up to May 12
Leading Indicator
IBC-Br (Economic Activity Index)

55. 55Source: BCB
IBC-Br (seasonally adjusted)
Recent Economic Indicators
Leading Indicator
IBC-Br (Economic Activity Index)
%
0.6
0.2
0.3
-0.9
-0.3
0.7 0.7
0.6
0.4
0.1
-0.1
0.5
0.3
1.2
-0.7
0.2
-0.5
0.3
-0.3-0.3
-0.5
0.8
0.5
-0.2
0.4
-0.2
0.1
0.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
Jan10
Mar10
May10
Jul10
Sep10
Nov10
Jan11
Mar11
May11
Jul11
Sep11
Nov11
Jan12
Mar12
May12
up to May 12

56. 56Sources: IBGE / FGV
Producer Price Indexes
Recent Economic Indicators
0
3
6
9
12
15
Dec10
Jan11
Feb11
Mar11
Apr11
May11
Jun11
Jul11
Aug11
Sep11
Oct11
Nov11
Dec11
Jan12
Feb12
Mar12
Apr12
May12
Jun12
Jul12
IPP IPA (10, M and DI)
%in12months
4.73%
IPP May 2012
8.04%
IPP Dec 2010
6.13%
IPA-10 Jul 2012
13.73%
IPA-10 Dec 2010

57. 57Source: FGV
General Price Index
Recent Economic Indicators
3
4
5
6
7
8
9
10
11
12
Dec10
Jan11
Feb11
Mar11
Apr11
May11
Jun11
Jul11
Aug11
Sep11
Oct11
Nov11
Dec11
Jan12
Feb12
Mar12
Apr12
May12
Jun12
Jul12
IGP (10, M and DI)
%in12months
6,03%
IGP-10 Jul 2012
11.16%
IGP-10 Dec 2010

58. 58Sources: IBGE / Fipe / FGV
Consumer Price Indexes
Recent Economic Indicators
%in12months
IPC-Fipe 2nd week=
4.30%
Jul 2012
INPC = 4.90%
Jun 2012
IPC-10= 5.31%
Jul 2012
IPCA= 4.92%
Jun 2012
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
Dec10
Jan11
Feb11
Mar11
Apr11
May11
Jun11
Jul11
Aug11
Sep11
Oct11
Nov11
Dec11
Jan12
Feb12
Mar12
Apr12
May12
Jun12
Jul12
IPCA-15 and IPCA INPC IPC-Fipe IPC (10, M and DI)

59. 59Source: IBGE
Consumer Price Index (IPCA)
General Overview
change yoy (%)
2004 2005 2006 2007 2008 2009 2010 2011 2012*
Consumer Price Index (IPCA) 7.6 5.7 3.1 4.5 5.9 4.3 5.9 6.5 4.9
Food and beverage 3.9 2.0 1.2 10.8 11.1 3.2 10.4 7.2 7.3
Housing 7.1 6.4 3.1 1.8 5.1 5.7 5.0 6.7 6.5
Household equipment 5.4 2.7 -2.7 -2.5 2.0 3.1 3.5 0.0 -1.6
Apparel 10.0 7.1 5.1 3.8 7.3 6.1 7.5 8.3 5.3
Transportation 11.0 8.1 3.0 2.1 2.3 2.4 2.4 6.1 0.5
Health and personal care 6.9 6.2 6.0 4.5 5.7 5.4 5.1 6.3 6.1
Personal expenses 6.9 7.0 7.3 6.5 7.4 8.0 7.4 8.6 9.1
Education 10.4 7.2 6.2 4.2 4.6 6.1 6.2 8.1 7.3
Communication 13.9 6.4 -0.2 0.7 1.8 1.1 0.9 1.5 0.4
Tradables 6.3 2.7 1.3 4.7 7.0 2.6 6.9 4.4 3.0
Non tradables 6.9 6.4 4.0 6.6 7.1 5.5 7.3 8.6 7.5
Regulated 10.2 9.0 4.3 1.7 3.3 4.7 3.1 6.2 3.8
Services 6.7 6.8 5.5 5.2 6.4 6.4 7.6 9.0 7.5
*Jun 12 (12 months)

60. 60Source: BCB
Commodity Price Index
General Overview
Dec05=100
80
90
100
110
120
130
140
150
160
Dec05
Jun06
Dec06
Jun07
Dec07
Jun08
Dec08
Jun09
Dec09
Jun10
Dec10
Jun11
Dec11
Jun12
IC-Br IC-Br agriculture
Jun 12/May 12
-0.2%
Jun 12/May 12
-1.4%
IC-Br: Brazilian Commodity Price Index in BRL; up to Jun 12

61. 61Source: BCB
FX Inflows
General Overview
US$billion(12months)
up to Jun 12
-70
-50
-30
-10
10
30
50
70
90
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
trade in goods and services financial total

62. 62Source: BCB
FX Inflows (monthly data)
Recent Economic Indicators
-5
0
5
10
15
20 Jan10
Mar10
May10
Jul10
Sep10
Nov10
Jan11
Mar11
May11
Jul11
Sep11
Nov11
Jan12
Mar12
May12
trade in goods and services financial total
US$billion
up to Jun 12

63. 63
National Financial
System

64. 64
National Monetary Council (CMN)
- Composed by the Minister of Finance, the Minister of Planning, Budget and
Management and the Governor of the Central Bank of Brazil
- Establishes the inflation target for monetary policy, prudential rules and credit
policy
- The Central Bank of Brazil is the financial supervisory authority
Source: BCB
National Financial System
National Financial System
NATIONAL
FINANCIAL SYSTEM
National Council of
Private Insurance-
CNSP
National Monetary
Council - CMN
Securities and
Exchange
Comission - CVM
Other financial
intermediaries
Stock Exchange
Bovespa
Commodities
and Futures
Exchange
Central Bank of
Brazil - BCB
Other financial
intermediaries
Exchange
Brokers
Financial
Institutions
Management Council
of Complementary
Pension -CGPC

65. 65
Central Bank of Brazil – Main Activities
National Financial System
Monetary
Policy
Financial
Regulation
Financial
Supervision
Wide scope of Central Bank’s authority helps
policy coordination

66. 66
Number of Institutions by Type
The National Financial System
Source: BCB
Type 2007 2008 2009 2010 2011 2012*
Multiple bank 135 140 139 137 139 137
Commercial bank 20 18 18 19 20 22
Development bank 4 4 4 4 4 4
Savings bank 1 1 1 1 1 1
Investment bank 17 17 16 15 14 15
Exchange bank 2 2 2
Consumer finance company 52 55 59 61 59 58
Securities brokerage company 107 107 105 103 99 97
Exchange brokerage company 46 45 45 44 47 52
Securities distribution company 135 135 125 125 126 120
Leasing company 38 36 33 32 31 30
Real estate credit company and savings and loan
association
18 16 16 14 14 12
Mortgage company 6 6 6 7 8 7
Development agency 12 12 14 15 16 16
591 592 581 579 580 573
Credit cooperative 1,465 1,453 1,405 1,370 1,312 1,279
Micro-entrepreneur credit company 52 47 45 45 42 42
2,108 2,092 2,031 1,994 1,934 1,894
Consorcio company 329 317 308 300 284 257
Total 2,437 2,409 2,339 2,294 2,218 2,151
* Jun 12

67. 67Source: BCB
Top 10 Financial Institutions
National Financial System
Name Ownership Total
assets
(BRL billion)
Credit and
leasing
operations
(BRL billion)
Total
deposits
(BRL billion)
Net
worth
(BRL billion)
Employees
(Thousand)
Branches
(#)
Basel
capital
ratio
(%)
Banco do Brasil Federal government owned 955 404 447 59 130 5,267 14.7
Itaú Domestic private 857 295 240 74 120 3,855 15.6
Bradesco Domestic private 692 240 214 58 100 4,645 14.9
BNDES Federal government owned 618 214 21 63 3 1 20.9
Caixa Federal government owned 558 269 269 21 107 2,347 12.8
Santander Foreign controlled private 424 176 123 67 54 2,518 24.0
HSBC Foreign controlled private 147 48 71 9 30 868 13.4
Votorantim Domestic private 148 55 26 8 2 35 13.0
Safra Domestic private 116 41 15 6 6 106 12.6
BTG Pactual Domestic private 91 4 16 7 1 7 16.8
Others 679 279 221 88 75 1,801
Banking segment total 5,213 2,023 1,662 458 629 21,450
Mar 12

68. 68Source: BCB
Brazilian Banks - Capital Adequacy Ratio
The National Financial System
13.8
14.8
16.6
19.0 18.5
17.4 17.8 17.3
17.7
18.9
16.9
16.3
16.0
0
5
10
15
20
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
Brazilian banks capital ratio Basel minimum capital ratio
regulatory minimum capital ratio
%
leverage ratio: 10.2
*Jun 12

69. 69
Prudential Regulation
and Supervision

70. 70
• All FIs regulated and supervised
• Financial regulation mostly infra-legal
• Convergence to international standards (IFRS,
Basel 2, 2.5 and 3, IOSCO)
• Participation in international forums (BCBS, G20,
FSB)
• Rigorous financial regulation
General Features
Prudential Regulation and Supervision

71. 71
• Risk-based approach to supervision
• On-site supervision
- frequent on-site examinations
- rating of supervised institutions
– qualitative assessment of risk management and control
– analysis of financial and economic indicators
– identification of areas to be monitored
• Includes contingency planning and assessment
of organizational structures dedicated to risks
Financial Supervision - Main Features
Prudential Regulation and Supervision

72. 72
• Directs on-site supervision towards the riskier
areas
• Specific monitoring of market and liquidity risks
- uses information on assets and derivatives registered
in clearing houses
- conciliation with FIs’ accounting information
• Monitoring of aggregate evolution of systemic
risk over time
• Periodic application of stress tests to FIs’
statements
Off-Site Supervision
Prudential Regulation and Supervision

73. 73
• Central Bank has detailed information about all
credit operations above BRL 1,000:
- 289 million credit operations with detailed information
- 45 million debtors
- Covers 96% of Brazilian banking credit market
- Information shared with banks, enabling better risk
assessment
- Allows Central Bank to carry out in-depth and timely
analysis of the financial system’s and individual bank’s
loan portfolios
Comprehensive Overview of the Credit Market
Prudential Regulation and Supervision

74. 74
• Minimum capital ratio: 11% of RWA (above Basel
minimum of 8%)
• Capital requirement for credit risk on trading book
exposures
• Lower risk weights for residential property exposures
conditioned to loan-to-value
- LTV < 50% 35% risk weight
- 50% < LTV < 80% 50% risk weight
- 80% < LTV < 100% 75% (retail) or 100% (otherwise)
• Highest multiplier for standardized market risk
requirement
• Forward-looking provisioning rules
Rigorous Regulation
Prudential Regulation and Supervision

75. 75
• Mandatory organizational structure for
management of each risk factor
- Credit, market and operational risks
- Board accountability on risk management
• Limits on large exposures
• Limits on foreign currency exposures
• Mandatory registration of OTC derivatives
• Mandatory internal controls
Rigorous Regulation
Prudential Regulation and Supervision

76. 76
• Provisions based on expected and incurred
losses, reducing procyclicality
• Full provisioning is required 6 months after
delinquency (fast provisioning)
• Write-offs are required 6 months after full
provisioning
• Central Bank applies the most conservative
credit risk classification possible for each
borrower (conservative provisioning)
Rigorous Regulation
Prudential Regulation and Supervision

77. 77
Credit

78. 78Source: BCB
Credit / GDP
Credit
25.8 26.0 24.6 25.7
28.3
30.9
35.2
40.5
43.7
45.2
49.0 50.1
-5
5
15
25
35
45
55
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
%ofGDP
2009-2011: 18.3%
(average growth of nominal credit)
2005-2008: 25.2%
(average growth of nominal credit)
*May 12

79. 79Source: BCB
Overall Credit
Credit
*May 12
% of GDP
Households Corporates Total
2001 9.6 16.3 25.8
2002 9.3 16.7 26.0
2003 9.4 15.2 24.6
2004 10.5 15.2 25.7
2005 12.3 16.0 28.3
2006 13.8 17.1 30.9
2007 16.0 19.2 35.2
2008 17.6 22.9 40.5
2009 19.6 24.0 43.7
2010 20.6 24.6 45.2
2011 22.7 26.3 49.0
2012* 23.5 26.6 50.1

80. 80Source: BCB *It does not include mortgage and credit to small farmers.
Credit by Economic Sector
Credit
**May 12
% of GDP
Public
Sector
Industry
Real
Estate
Agriculture
Retail and
Services
Households* Total
2001 0.8 7.6 1.8 2.1 7.4 6.2 25.8
2002 0.9 7.8 1.7 2.4 7.3 6.0 26.0
2003 0.9 6.9 1.5 2.8 6.8 5.8 24.6
2004 1.0 6.4 1.3 3.0 6.9 7.0 25.7
2005 1.0 6.5 1.4 3.1 7.6 8.8 28.3
2006 0.8 6.9 1.5 3.3 8.4 10.0 30.9
2007 0.7 8.0 1.7 3.4 9.5 11.8 35.2
2008 0.9 9.8 2.1 3.5 11.4 12.8 40.5
2009 1.8 9.4 2.8 3.5 11.9 14.3 43.7
2010 1.8 9.6 3.7 3.3 12.3 14.6 45.2
2011 2.0 10.1 4.8 3.4 13.4 15.3 49.0
2012** 2.1 10.1 5.4 3.4 13.6 15.5 50.1

81. 81Source: BCB
Earmarked / Total Credit
Credit
34.3
37.5
38.9
36.3
33.5
32.0
29.4 29.0
32.5
34.6
35.7 35.9
0
10
20
30
40 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
%oftotalcredit
*May 12

82. 82Source: BNDES
BNDES Disbursements by Business Sector
Credit
46 48
40
50 53
40 43 46 47
32
28
35 30
38
36 33
40
39 35 31
40
39
12
14 17
9 7
8 6 5
6
7
9
7 8 5 5 7
12 12 14 16
21 24
0
20
40
60
80
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
Industry Infrastructure Farming Retail and Services
%
*Jan-Apr 12

83. 83Source: BCB
Credit to Real Estate / Total Credit
Credit
%oftotal
6.5 6.1 6.4 6.8 7.5 9.0 11.1 13.1 14.0
0
10
20
30
40
50
60
70
80
90
100
2004
2005
2006
2007
2008
2009
2010
2011
2012*
credit to real estate other credits
*Apr 12

84. 84Source: BCB
Securitized Housing Credit
Credit
0.3 1.4 1.9 2.2 4.2
8.3 7.9 7.7 9.9 9.7 11.0 11.2 10.4
0
10
20
30
40
50
60
70
80
90
100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
securitized non-securitized
%ofhousingcredit
*Apr 12

85. 85Sources: BCB / World Bank
Housing Credit / GDP
Credit
102.1
93.9
88.7
72.7
65.5
63.2
62.0
40.0
37.4
36.7
30.6
24.3
18.4
14.0
13.0
12.5
6.0
5.1
2.4
0 20 40 60 80 100 120
Switzerland
Netherlands
United Kingdom
United States
Portugal
Canada
Spain
Germany
France
South Korea
South Africa
Japan
Italy
Chile
China
Mexico
India
Brazil
Russian Federation

86. 86Source: BCB
Non-Performing Loans
Credit
up to May 12
%
1
2
3
4
5
6
7
8
9 Jan02
Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
Corporations Individuals
Monetary
tigthening
cycles
Arrears above 90 days

87. 87Source: BCB
Provisions (% of Non-Performing Loans)
Credit
140%
150%
160%
170%
180%
190%
200%
210%
220%
230% Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
provisions/NPLs 3-mo moving average up to May 12

88. 88Source: BCB
Households Debt
Credit
15
20
25
30
35
40
45
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
Debt Debt Service, seasonally adjusted
%ofincome
up to Apr 12

89. 89
• Increased capital requirements for consumer loan
exposures involving longer maturities.
Macroprudential Measures
Operation Maturity Risk Weight
Vehicles (financing
and leasing)
up to 60 months 75%* or 100%
more than 60 months 150%
Payroll-deducted
loan
up to 60 months 75%* or 100%
more than 60 months 300%
Personal loan
up to 36 months 75%* or 100%
between 37 and 60 months 150%
more than 60 months 300%
Other consumer loans
* retail operations
Unchanged
Credit

90. 90
• Established unremunerated reserve requirement on short
spot FX positions above a limit
- Limit: the lowest between US$1 billion and the bank’s
capital base
• Minimum payment for credit card bill
- 15% (June 2011)
• Established the Financial Stability Committee (Comef)
within the Central Bank, in order to coordinate the Bank's
efforts to monitor, evaluate, and mitigate systemic risk
- Membership: Governor and Deputy Governors
- Bimonthly meetings
Macroprudential Measures
Credit

91. 91Source: BCB
Credit to Households – Non-Performing Loans
Credit
Non-performing loans composition by period (date in which the operations was set)
Includes credit to vehicles, leasing operations, payroll-deducted loans and
not payroll-deducted loans
38.7
19.7
24.8 28.6 27.1
49.5
57.7
38.8
49.0 50.3
10.5
19.2
26.8
13.4 14.8
1.3
3.4
9.6 9.0 7.9
0
20
40
60
80
100
Dec 08 Dec 09 Dec 10 Dec 11 May 12
Last 12 months 13 to 24 months ago 25 to 36 months ago Other
%

92. 92Source: BCB
Credit to Households – Non-Performing Loans
Credit
Contribution for the household non-performing loans by credit maturity
19.3%
14.1%
37.7%
28.9%
Up to 3 years
Within 3 and 4 years
Within 4 and 5 years
Above 5 years
*May 12

93. 93
Financial Inclusion

94. 94Sources: BCB / IBGE
Geographic Coverage Increased
Financial Inclusion
2000 2010
0 (20%)
>0 to 2 (22%)
>2 to 5 (40%)
>5 to 10 (16%)
>10 (2%)
# of points per 10,000 adults
(% of municipalities)
0 (0%)
>0 to 2 (0%)
>2 to 5 (6%)
>5 to 10 (29%)
>10 (65%)
# of points per 10,000 adults
(% of municipalities)
82% of municipalities had less than 5 points per 10,000 adults in 2000.
In 2010, 94% were above this level.
Bank branches, bank advanced outposts (PAA), credit cooperatives
(headquarters and outposts) and correspondents

95. 95Source: BCB
Access to Banking Services
Financial Inclusion
2002 2009 2011
Accounts (for the banking sector) 55,708,468 83,308,800 91,944,421
Customers 87,630,527 151,102,765 174,791,126
Branches
For the banking sector 17,049 20,046 21,278
For all financial institutions 17,756 21,287 22,628
Posts of service (for the banking sector) 32,769 53,628 60,375
ATM’s 129,913 165,567 174,920
Domestic correspondents 78,539 151,351 177,925
Municipalities
Without banking services 222 - -
With banking services 5,358 5,566 5,564
Municipalities banking services coverage 96% 100% 100%

96. 96
• Definition: non-financial firms hired by FIs to
render basic banking services on their behalf
• Main correspondent chains are post offices,
lottery outlets, supermarkets
• Over 180,000 points of sale, compared to 20,000
branches of FIs (May 2011)
• Allows banking system to cover all 5,566
municipalities
• Due diligence and anti-money laundering rules
apply to correspondents
Bank Correspondents
Financial Inclusion

97. 97
• Main services are handling basic account
transactions and receiving loan applications,
processing payments, and transferring funds
• Bank-based model: financial institution (licensed,
supervised) takes full responsibility for the
services
• Correspondent may not charge additional fees to
the public for its services
• Main activity of the correspondent has to be
commercial, non-related to financial services
Bank Correspondents
Financial Inclusion

98. 98
• Benefits for the bank
- Broadens client basis
- Smaller overhead and direct costs
- Informal environment: more inviting for lower-income
customers
- Flexible hours of operation
• Benefits for the correspondent
- Transaction fees from the bank
- Use of spare capacity
- Increased flow of customers
- Links the firm to a renowned brand
Synergies in Correspondent Banking
Financial Inclusion

99. 99
Complementary Channels are Important
Financial Inclusion
Sources: BCB / IBGE
Bank branches – 2010
Bank branches, outposts, credit cooperatives
and correspondents – 2010
All municipalities have at least one bank branch, outpost or correspondent.
Correspondents contribute to network density
0 (38%)
>0 to 1(25%)
>1 to 5 (26%)
>5 to 10 (13%)
>10 (14%)
# of points/1,000 km2
(percentage of municipalities)
0 (0%)
>0 to 1(3%)
>1 to 5 (12%)
>5 to 10 (12%)
>10 (73%)
# of points/1,000 km2
(percentage of municipalities)

100. 100
Investments

101. 101Source: IBGE
Investment Rate at a New Level
Investments
18.3
16.9
17.4
17.0
15.7
16.8
17.0
16.4
15.3
16.1 15.9
16.4
17.4
19.1
18.1
19.5
19.3
19.1
14
15
16
17
18
19
20
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
%ofGDP
*1Q 2012 (12 months)

102. 102Source: BCB
Foreign Direct Investment
General Overview
US$billion
3.1
1.3 1.5 1.4 0.3 1.2
2.8
1.1 1.0 1.1 2.1 1.3 2.1
4.4
10.8
19.0
28.928.6
32.8
22.5
16.6
10.1
18.1
15.1
18.8
34.6
45.1
25.9
48.5
66.7
63.0
0
10
20
30
40
50
60
70
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012*
*May 12 (12 months)

103. 103
Brazil is a Major Recipient of FDI
Investments
Source: Ministry of Planning
• State-owned companies and the private sector will act as
government partners
(*) PAC - Growth Acceleration Plan is a common management umbrella under which are
major infrastructure projects
PAC* expected investment (USD billion) until 2014
Logistics 67.2
Power Generation & Transmission 260.0
Social & Urban Mobility 200.4
Total 527.6

104. 104Source: Ministry of Planning
Investment Projects Map
Investments
Port of Manaus -
concession
South Bahia and
Deep Water ports
- concession
HPP Jirau (USD 7.3 bn)
and Sto. Antonio
(USD 2.3 bn) - PPP
HPP Belo Monte
(USD 14.4 bn) - PPP
SP-Rio high speed train
(USD 18 bn) -
concession
Midwest integration railway
North-South railway
East-West
integration
railway
São Paulo (USD 2.5 bn)
and Campinas Airports
(USD 4.8 bn) -
concession
Brasilia Airport
(USD 1.6 bn) - concession
Natal Airport (USD 0.4
bn) – concession
BR-040 and BR-116
(USD 3.0 bn) -
concession
Refineries and
petrochemical plants
(USD 76 bn)
Oil drilling and production
development (USD 405 bn) - private
Other 21 HPP (USD 21 bn)
– PPP
Power grid – 42,000 km.
(USD 27 bn) - concession
Subways and urban
trains (USD 7 bn)
Social housing:
2 million houses
(USD 69 bn) - PPP
Q
Q
Q
Q

105. 105Source: BNDES
Investment Prospects - Industry
Investments
US$ billion Growth
2007-2010 2012-2015 %
Oil and gas 136 202 48.5
Mining 39 29 -25.2
Steel 18 18 0.6
Petrochemical 14 17 19.5
Vehicles 18 31 74.0
Electronics 13 18 37.1
Pulp and Paper 11 12 8.3
Textile and Apparel 6 8 33.3
Aviation 2 5 198.6
Total 257 341 32.5
Mar 12

106. 106Source: BNDES
Investment Prospects - Infrastructure
Investments
US$ billion Growth
2007-2010 2012-2015 %
Electric Power 81 90 10.6
Telecoms 41 42 4.6
Sanitation 18 25 33.5
Railroads 14 26 76.8
Roads 23 30 32.9
Ports 5 9 61.9
Airports 1 6 333.9
Total 184 227 23.3
Mar 12

107. 107Source: Petrobras
Brazilian Oil Reserves
Investments
0
5
10
15
20
25
30
35
40
45 1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
future*
deepwater offshore fields
(pre-salt layer)
*estimated volume
Tupi and Iracema*
(8 billion boe)
Franco* (4.5 billion boe)
Libra* (8 billion boe)
Iara* (4 billion boe)
Guara* (2 billion boe)
crude oil, NGL and natural gas
billion–barreloilequivalent(boe)

108. 108
BCB Central Bank of Brazil
BNDES National Bank of Economic and Social Development
CMN Brazilian National Monetary Council
CVM Brazilian Securities Commission
FAO Food and Agriculture Organization
Fipe Economic Research Institute Foundation
FGV Getulio Vargas Foundation
IBGE Brazilian Institute of Geography and Statistics
IMF International Monetary Fund
Ipea Institute for Applied Economic Research
MDIC Ministry of Development, Industry and Foreign Trade
UN United Nations
Glossary