! " # " $ % & ' % # " ) * + + " , " - . & / * * + * 0 !

1 2 % # " 2 2
8razll
Lduardo Codlnez
Characteri zed by l arge and wel l -devel oped agri cul tural , mi ni ng, manufacturi ng, and servi ce
sectors, Brazi l ' s economy outwei ghs that of al l other South Ameri can countri es, and Brazi l i s
expandi ng i ts presence i n worl d markets. (
1
)

u8
34++
34++
'12
2

!"#$%&'(# *%++,-.

/,0'&,1 2,-3#& 4.5,+'$6

78-#'95 !"$:,59# ! Following the shaip exchange iate swings witnesseu in
Septembei, the Biazilian ieal (BRL) is now immeiseu in a consoliuation phase,
tiauing between 1.7S anu 1.9u pei 0S uollai (0SB). The neai-teim outlook may
involve anothei iounu of cuiiency aujustments in light of heighteneu global
financial maiket volatility. Inteiest iate uiffeientials will continue to uiive capital
flows to local-cuiiency assets, ieigniting an appieciating bias into the BRL to close
2u12 at 1.7S. We estimate that outiight goveinment inteivention, intenueu to
moueiate financial maiket volatility anu auuiess potential economic oveiheating
anu assetcuiiency oveivaluation iisks, will intensify in the coming yeai. The
cential bank is well positioneu to inteivene with a vast inteinational ieseives stock
of 0S$SSu billion.
1

*8(#-#'95 4#;& < /-#='& >,&'596 ! Biazil's cieuitwoithiness continues to
impiove. 0n Novembei 17, 2u11, Stanuaiu & Pooi iaiseu the countiy's long-teim
foieign-cuiiency soveieign cieuit iating by one notch to "BBB" with a "stable"
outlook. The iating agency, which also upgiaueu the countiy's local-cuiiency iating
to "A-", highlighteu Biazil's commitment to piuuent macioeconomic policymaking,
counteicyclical fiscal policy anu steauy impiovement in the countiy's exteinal uebt
piofile. Financial maiket investois showeu a high uegiee of inuiffeience to the
iating action given that maiket metiics hau alieauy been uiscounting Biazil's
impioveu uebt piofile foi some time.
1


!$858+'$ ?%&1883

@-8A&: ! The Biazilian economy is in a state of ueceleiation following the stiong
peifoimance iecoiueu uuiing the fiist nine months of 2u1u, a peiiou chaiacteiizeu
by stiong pie-election fiscal stimulus. Bomestic uemanu iemains the piimaiy uiivei
of economic stiength, wheieas the exteinal sectoi has uetiacteu fiom giowth ovei
the past thiee quaiteis. The Biazilian outlook is piomising uespite public sectoi
buuget cuts, commouity piice aujustments anu softening inuustiial piouuction
activity. We estimate that aftei a shaip uecline in the pace of economic expansion in
2u11 (ieal uBP will giow by 2.8%), Biazil will ieceive a majoi boost fiom foieign
(uiiect anu poitfolio) capital flows, incieasing access to uomestic cieuit, iecoiu low
unemployment anu systemically iobust financial institutions. If China sustains its
cuiient level of economic activity, the Biazilian economy may giow by an annual
aveiage iate of 4% ovei the next two yeais.
1


B5C1,&'85 < 285#&,-. /85&#"& ! Piice stabilization is a key issue to monitoi. Both
consumei anu asset piice inflation aie on the iise, euging the uppei bounu of the
official 4.S% 2% taiget this yeai. The IPCA-baseu inflation iate expeiienceu 1S
consecutive monthly incieases until its fiist uecline last 0ctobei (cuiiently at 6.6%
S
yy). Tight laboi maiket conuitions anu ielatively high commouity piices aie also
fueling piice piessuies. The auministeieu shoit-teim SELIC taiget iate, piojecteu to
close next yeai at 1u.Su%, is a poweiful magnet foi high-yielu investois when
compaieu with neai-zeio inteiest iates in the 0S, }apan anu Euiope. Biazilian
monetaiy uynamics will continue to influence the policy uecisions auopteu by othei
ueveloping countiies thioughout South Ameiica.
1


7'6$,1 < /%--#5& D$$8%5& E,1,5$# ! The fiscal outlook is positive uespite a
mouest wiuening in the consoliuateu public sectoi ueficit to 2.6% yy of uBP in
Septembei. The maiket-sensitive piimaiy fiscal balance iemaineu veiy soliu at
S.2S% of uBP uuiing the same month. Secuiitizeu goveinment uebt ieacheu 4S% of
uBP, of which fixeu-iate assets iepiesent Su% of the total. SELIC-inuexeu secuiities
account foi 27% of total goveinment uebt. An impioveu uebt piofile is also ieflecteu
in the gioss public sectoi uebt to uBP iatio of S6%. 0n the exteinal fiont, the
wiuening cuiient account ueficit of 0S$47.S billion (equivalent to 2% of uBP)
iemains fully financeu by vast foieign uiiect investment inflows (exceeuing 0S$7S
billion in the 12 months to 0ctobei 2u11).
1


B56&'&%&'85,1 7-,+#A8-3 < F81'&'$,1 !5('-85+#5&

@8(#-5,5$# ! The auministiation of Piesiuent Bilma Rousseff continues to apply a
high uose of piagmatism - not outuateu iueology - in the conuuct of macioeconomic
policies. The state plays a uominant iole as both a iegulatoi anu an actoi in
stiategically ielevant manufactuiing anu financial sectois. The executive bianch
uoes not easily toleiate acts oi allegations of coiiuption within the goveinment, as
was uemonstiateu by active cabinet ieshuffling thioughout the yeai. The iisk of
intensifying piotectionist measuies may inciease in the neai teim as the global
economy ueceleiates.
1

7'5,5$',1 *#$&8- ! The Biazilian financial sectoi is systemically well piepaieu to
auapt to a moie stiingent global iegulatoiy fiamewoik anu aptly capitalizeu to
weathei auveise exteinal shocks (with an auequacy iatio ovei 16%). Total loans
outstanuing, which incieaseu by 19.6% in the 12 months to Septembei 2u11, now
iepiesent 48% of uBP. State-owneu banks account foi 42% of total system lenuing.
Although uomestic inteiest iates have been ueclining since 2uuS, they iemain veiy
high (ovei 4u% on aveiage pei yeai). Bouseholu finance asset quality inuicatois
point to ielatively weak non-peifoiming loans, with the NPL iatio foi ietail loans at
6.8% of total loans.
1






1
. Pablo F.u. Biaiu, . "Latin Ameiica - Regional Economic 0utlook." !"#$%&'&() +,#-.. Scotiabank uioup, 2u11.
Web. 26 Api 2u12. <http:www.gbm.scotiabank.comEnglishbns_econlatin.puf>.

4


Table of Contents

Country Summary 1
Currency 2
Exchange Rates 3
Exchange Rate Arrangement 4
Balance Of Payments 5
Rule of Law 6
Regulatory Index 7
Purchasing Power Parity 8
Interest Rate 9
Inflation Rates 10
Banking 11
Economic Indicators 12
Investor Protection 1A
Credit Indicators 2A
Sovereigns Rating 3A
Political Indexes 4A
Starting a Business Indicators 5A
Trading Across Borders Index 6A
Labor Index 7A
Tax Index 8A
Overall Country Rating 9A

S

/8%5&-. *%++,-.

Background:
Following more than three centuries under Portuguese rule, Brazil gained its
independence in 1822, maintaining a monarchical system of government until the
abolition of slavery in 1888 and the subsequent proclamation of a republic by the military
in 1889. By far the largest and most populous country in South America, Brazil
underwent more than half a century of populist and military government until 1985, when
the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue
industrial and agricultural growth and development of its interior. Exploiting vast natural
resources and a large labor pool, it is today South America's leading economic power and
a regional leader, one of the first in the area to begin an economic recovery. Highly
unequal income distribution and crime remain pressing problems. (
2
)
Geographically:
Brazil is the largest country in all of South America, slightly smaller than the
U.S.A. It shares boundaries with every country in S.A. with the exception of Chile and
Ecuador. Also, Brazil, has a wide variety of natural resources including: bauxite, gold,
iron ore, manganese, nickel, phosphates, platinum, tin, rare earth elements, uranium,
petroleum, hydropower, and timber.
People and Culture:
Brazilians, ethnically, are made up of Caucasians (53.7%), Mulattos (38.5%),
Blacks (6.2%) and other (1.6%). Their predominant language is Portuguese; they are, for
the most part, bilingual whose languages include: English, Spanish, Japanese and
German. Finally, their labor force is roughly about 104.3 million with a literacy rate of
88%.
Economy:
Characterized by large and well-developed agricultural, mining, manufacturing,
and service sectors, Brazil's economy outweighs that of all other South American
countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has
steadily improved its macroeconomic stability, building up foreign reserves, and reducing
its debt profile by shifting its debt burden toward real denominated and domestically held
instruments. In 2008, Brazil became a net external creditor and two ratings agencies
awarded investment grade status to its debt. After strong growth in 2007 and 2008, the
onset of the global financial crisis hit Brazil in 2008. Urban unemployment is at the
historic low of 4.7% (December 2011), and Brazil's traditionally high level of income
equality has declined for each of the last 12 years. Brazil's high interest rates make it an
attractive destination for foreign investors. Large capital inflows over the past several
years have contributed to the appreciation of the currency, hurting the competitiveness of
Brazilian manufacturing and leading the government to intervene in foreign exchanges
markets and raise taxes on some foreign capital inflows. President Dilma ROUSSEFF has
retained the previous administration's commitment to inflation targeting by the central
bank, a floating exchange rate, and fiscal restraint. (
2
)

2
./#,01 2&"$'##). The Cential Intelligence Agency, 2u12. u. 2S Api 2u12.
<https:www.cia.govlibiaiypublicationsthe-woilu-factbookgeosbi.html>.

6

G'6&8-'$,1 /%--#5$.

The Biazil ieal (BRL) became the official cuiiency of Biazil in 1994. The
Reseive Bank of Biazil iegulates the Real. Its bank notes come in 1, 2, S, 1u, 2u, Su, &
1uu. Biazil also caiiies cuiiency in coins, which comes in cents of 1, S, 1u, 2S, & Su
as well as a coin of 1 Real.


7

!"$:,59# >,&#6





As shown in the chart above; Brazil experienced two quarters of
recession, as global demand for Brazil' s commodity-based exports dwindled
and external credit dried up. However, Brazil was one of the first emerging
markets to begin a recovery. Consumer and investor confidence revived and
GDP growth returned to positive in 2010 (
3
) the global recession did not hit Brazil
until late 2008.







S
. /#,01 2&"$'##). The Cential Intelligence Agency, 2u12. u. 2S Api 2u12.
<https:www.cia.govlibiaiypublicationsthe-woilu-factbookgeosbi.html>.
8

!"$:,59# >,&# D--,59#+#5&

Brazils monetary arrangement with the U.S. is the Floating arrangement. This
has no foreseeable or predictable path of rate and it is largely market determined. They
are still using the same monetary system as shown in Exhibit 2.4 as of 2011. The real
strengthened to as much as BRL $1.53 to the dollar, the strongest level since Brazil
started a free-floating currency regime in 1999.

















9

E,1,5$# 8C F,.+#5&6





B0P's Cuiient Account Balance ('u6 - '16)



5"46 7. !%++%*#
2016 -$120.02
2013 -$112.76
2014 -$103.62
2013 -$92.43
2012 -$76.11
2011 -$62.60
2010 -$47.32
2009 -$24.30
2008 -$28.19
2007 $1.33
2006 $13.64




*'12 - '16 aie estimateu numbeis.


1u

>%1# 8C H,A



Country Sources Year Percentile Rank
(0-100)
Governance Score
(-2.5 to +2.5)
Standard Error




BRAZIL
17

2010 55.5 +0.00 0.13
17

2009 50.2 -0.21 0.13
16

2008 43.3 -0.37 0.14
16

2007 43.1 -0.44 0.14
16

2006 42.6 -0.44 0.14









90th-100th Percentile

50th-75th Percentile

10th-25th Percentile


75th-90th Percentile

25th-50th Percentile

0th-10th Percentile
Souice: Kaufmann D., A. Kraay, and M. Mastruzzi (2010), The Worldwide Governance Indicators: Methodology and Analytical Issues
Note: The governance indicators presented here aggregate the views on the quality of governance provided by a large number of enterprise, citizen and expert survey
respondents in industrial and developing countries. These data are gathered from a number of survey institutes, think tanks, non-governmental organizations, and
international organizations. The WGI do not reflect the official views of the World Bank, its Executive Directors, or the countries they represent. The WGI are not used by
the World Bank Group to allocate resources.


















11


>#9%1,&8-. B5=#"



Country Sources Year Percentile Rank
(0-100)
Governance Score
(-2.5 to +2.5)
Standard Error




BRAZIL
10

2010 56.0 +0.19 0.17
10

2009 56.9 +0.18 0.17
10

2008 54.4 +0.07 0.17
10

2007 52.9 -0.02 0.18
10

2006 53.4 -0.04 0.17









90th-100th Percentile

50th-75th Percentile

10th-25th Percentile


75th-90th Percentile

25th-50th Percentile

0th-10th Percentile
Souice: Kaufmann D., A. Kraay, and M. Mastruzzi (2010), The Worldwide Governance Indicators: Methodology and Analytical Issues
Note: The governance indicators presented here aggregate the views on the quality of governance provided by a large number of enterprise, citizen and expert survey
respondents in industrial and developing countries. These data are gathered from a number of survey institutes, think tanks, non-governmental organizations, and
international organizations. The WGI do not reflect the official views of the World Bank, its Executive Directors, or the countries they represent. The WGI are not used by
the World Bank Group to allocate resources.

















12



F%-$:,6'59 F8A#- F,-'&.

Accoiuing to the CIA Woilu Fact Book, Biazil has Puichasing Powei Paiity (PPP) of
$2,284 tiillion (estimate as of 2u11), which leaves them as numbei 8 in compaiison
to the woilu; 6 places behinu the 0niteu States. Bespite theii ueciease in uBP foi
2u11, they manageu to oveitake the 0niteu Kinguom in teims of uBP.



5"46
Lxchange
8aLe Change
lnflaLlon 8aLe
ulfference
2007-!an - 0.91
2007-!uly -11.72 1.38
2008-!an -6.13 0.28
2008-!uly -10.09 0.77
2009-!an 44.93 3.81
2009-!uly -16.20 6.60
2010-!an -8.37 1.96
2010-!uly -0.30 3.36
2011-!an -3.26 4.36
2011-!uly -6.31 3.24
2012-!an 14.98 3.29





1S



B5&#-#6& >,&#6




As shown on the giaph above, Biazil hau exponentially high inteiest iates in
the beginning of 'u6 in compaiison with that of the 0S at the time. As the economic
ciisis hit in 'u8 Biazil's inteiest iate began to iise befoie it staiteu to ueciease,
meanwhile, the 0S began to act on monetaiy policies anu uecieaseu the inteiest
iates to an all time low of .2S% anu has continueu to maintain its low inteiest iate in
oiuei to entice investment. As Biazil began to iecovei anu gain economic stability
they staiteu to ueciease theii iate uown to 9% eaily in the yeai.






14


B5C1,&'85 >,&#6

5"46 7.8 9"4+
:#0+4'%*# 94'"
8%00"6"#&"
2007-!an 2.08 2.99 0.91
2007-!uly 2.36 3.74 1.38
2008-!an 4.28 4.36 0.28
2008-!uly 3.60 6.37 0.77
2009-!an 0.03 3.84 3.81
2009-!uly -2.10 4.30 6.60
2010-!an 2.63 4.39 1.96
2010-!uly 1.24 4.60 3.36
2011-!an 1.63 3.99 4.36
2011-!uly 3.63 6.87 3.24
2012-!an 2.93 6.22 3.29



As shown by the uata above, piioi to the economic ciisis, Biazil anu the 0S
hau ielatively similai inflation; howevei, once the ciisis hit; Biazil's inflation
uecieaseu only slightly uue to the slight ueciease of theii inteiest iate, while the 0S
took a uiffeient monetaiy policy appioach anu uecieaseu its inteiest iate ielatively
low in oiuei to inciease investment anu consumption spenuing. This iesulteu in a
uiamatic ueciease of its inflation in the beginning, only to balance out in the months
to come managing to avoiu hypeiinflation.



1S


E,6#1 BBB

"As with Chile, foi many yeais Biazil's banking iules have been moie
conseivative than what inteinational iegulations commanu. Bence, the Cential Bank
of Biazil expect|euj that although theie will be a neeu to stiengthen some of Biazil's
banks' capital base, by anu laige Biazilian banks aie at a moie comfoitable position
to implement Basel III iefoims that most financial fiims in othei countiies. To be
suie, the capital measuies that Basel III calls foi eaily implementation aie alieauy
met. In auuition, the cential bank is stuuying the possibility of setting an acceleiateu
scheuule, in which the iegulatoiy aujustments woulu be in place by }uly 2u12--two
yeais aheau of Basel III's pioposeu timeline." (
4
)


Bank Rate 9%
Repo Rate 8%
Reveise Repo Rate 7%
Cash Reseive Ratio (CvR) 4.7S%
Satutoiy Liquiuity Ratio (SLR) 24%
Base Rate 1u -1u.7S%
Reseive Bank Rate 4%
Beposit Rate 8.S - 9.2S%

Policy rates, Reserve ratios, lending, and deposit rates as of April 25, 2012.
Basel III lncreases Lhe reslllence of Lhe global banklng sysLem by ralslng Lhe
quallLy, quanLlLy and lnLernaLlonal conslsLency of bank caplLal and llquldlLy, consLralns
Lhe bulld-up of leverage and maLurlLy mlsmaLches, and lnLroduces caplLal buffers above
Lhe mlnlmum requlremenLs LhaL can be drawn upon ln bad Llmes.
1he framework lncludes an lnLernaLlonally harmonlzed leverage raLlo Lo serve as a
backsLop Lo Lhe rlsk-based caplLal measures. WlLh Lhls, we have achleved far-reachlng
reform of Lhe global banklng sysLem. 1he new sLandards wlll markedly reduce banks'
lncenLlve Lo Lake excesslve rlsks, lower Lhe llkellhood and severlLy of fuLure crlses, and
enable banks Lo wlLhsLand - wlLhouL exLraordlnary governmenL supporL - sLresses of a
magnlLude assoclaLed wlLh Lhe recenL flnanclal crlsls. 1hls wlll resulL ln a banklng sysLem
LhaL can beLLer supporL sLable economlc growLh. We are commlLLed Lo adopL and
lmplemenL fully Lhese sLandards wlLhln Lhe agreed Llmeframe LhaL ls conslsLenL wlLh
economlc recovery and flnanclal sLablllLy."(
S
)

4
. "Basel III Aiounu the Woilu: Ameiicas." 3#,(%(45$&,. N.p., 2u11. Web. 2S Api 2u12.
<http:www.moiningstai.co.ukuknewsaiticles9786SBasel-III-anu-Banks-Ameiicas.asp&xgt;.

S
. 6&570 %%% 8#9.0%&("7 :,#2755%#(&05 ;55#"%&$%#( . N.p., n.u. Web. 1S Nai 2u12. <http:www.basel-iii-
accoiu.com>.
16


!$858+'$ B5='$,&8-6









!64;%+ 2003 2006 2007 2008 2009 2010
lnward lul llow $13,066 $18,822 $34,383 $43,038 $23,949 $48,438
CuLward lul llow $2,317 $28,202 $7,067 $20,437 -$10,084 $11,319
lnward lul SLock $181,344 $220,621 $309,668 $287,697 $400,808 $472,379
CuLward lul SLock $79,239 $113,293 $139,886 $133,668 $164,323 $180,949

!64;%+ 2003-06 2006-07 2007-08 2008-09 2009-10
Cf change lul lnward llows 24.9 83.7 30.3 -42.4 86.7
Cf change lul CuLward llows 1020.3 -74.9 189.3 -149.3 -214.2
Cf change lul lnward SLocks 21.7 40.4 -7.1 39.3 17.9
Cf change lul CuLward SLocks 42.9 23.3 11.3 3.7 10.0

.*1'/ < )"#'64+
=>"6%&4
2003 2006 2007 2008 2009 2010
lnward lul llow $72,198 $69,833 $108,701 $126,163 $73,772 $111,103
CuLward lul llow $19,643 $43,603 $23,412 $37,374 $13,471 $47,062
lnward lul SLock $683,669 $776,013 $943,323 $998,387 $1,140,413 $1,307,203
CuLward lul SLock $194,377 $230,826 $299,044 $322,134 $366,940 $406,071

.*1'/ < )"#'64+ =>"6%&4 2003-06 2006-07 2007-08 2008-09 2009-10
Cf change lul lnward llows -3.3 33.7 16.1 -39.9 46.6
Cf change lul CuLward llows 122.0 -46.3 39.6 -64.0 249.4
Cf change lul lnward SLocks 13.3 21.8 3.6 14.2 14.6
Cf change lul CuLward SLocks 29.0 19.2 7.7 13.9 10.7







17

















18












*Fiom 2uuS to 2uu6 theie was a uiastic inciease of Foieign Biiect Investment Flow
outwaiu; fiom $2,S17 million to $28,2u2 million.



19

















2u


B5(#6&8- F-8&#$&'85




































LaLln
Amerlca 8razll uS PlghesL 8anked
LxLenL of ulsclosure lndex (0-10) 4 6 7
Chlna, lrance, 8ulgarla,
uk
LxLenL of ulrecLor LlablllLy lndex (0-10) 3 7 9 uS, 8wanda, lsrael, nZ
Lase of Shareholder SulLs lndex (0-10) 6 3 9 kenya, nZ
SLrengLh of roLecLlon lndex (0-10) 3.1 3.3 8.3 Slngapore
21


/-#='& B5='$,&8-6



































LaLln
Amerlca
8razll uS PlghesL 8anked
SLrengLh of legal rlghLs lndex (0-10) 6 3 9 Pong kong, kenya
uepLh of credlL lnformaLlon lndex (0-6) 3 3 6
ArgenLlna, Canada, uk,
uS
ubllc reglsLry coverage ( of adulLs) 10.1 36.1 0.0 orLugal
rlvaLe bureau coverage ( of adulLs) 34.2 61.3 100.0
ArgenLlna, AusLralla, uk,
nZ
22


*8(#-#'956 >,&'59











































I>,&'59 /8%5&-. DJ
E%6'5#66 /1'+,&# D66#66+#5& DK
*<F EEE
78-#'95 /%--#5$. >,&'59 EEEL
M</ D66#66+#5& EEEL
2S


F81'&'$,1 B5=#"#6







N!OP
E1,$3 B$856 QERSQ0seu only foi the economic Effectiveness)
iepiesent "extieme fiagility" anu a scoie of 4, Inuicates an
Institutionalizeu uemociacy.
>#= B$856 Q>RS Repiesent "high fiagility" anu a scoie of S;
inuicates a moueiate net petioleum consuming countiy 91-1u
baiiels pei capita.
?-,59# B$856 Q?RS Repiesent "moueiate fiagility" anu a scoie
of 2; Inuicates countiy has been uiiectly involveu in one oi
moie majoi sometime uuiing the pievious 2u yeai peiiou
(1986-2uuS), but has no expeiienceu a majoi aimeu conflict
since, that is, foi at least the past five yeais.
O#118A B$856 QORS Repiesent "low fiagility anu a scoie of 1;
Inuicates countiy is goveineu by an uninsitutionalizeu, oi
"weak," autociatic iegime.
@-##5 B$856 Q@RS Repiesent "no fiagility" anu a scoie of u






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ArgenLlna 1 0 1 C C C C uLM C C + C C
!64;%+ ? @ A B C B 5 8DE 5 B 5 5
Canada 0 0 0 C C C C uLM C C 13 C C
Chlle 2 0 2 C C * C C uLM C C + C C
venezuela 11 3 8 C C C C auL C 8 21 ? ?
24

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LaLln Amerlca &
Carlbbean
unlLed
SLaLes
8razll PlghesL
rocedures 9 6 13 new Zeeland, Canada
1lme 34 6 119 new Zeeland
CosL 37.3 1.4 3.4 uenmark
ald-ln Mln. 4.3 0.0 0.0 Albanla, 8razll
26
M-,='59 D$-866 E8,-=#-6



































LaLln Amerlca &
Carlbbean
unlLed
SLaLes
8razll PlghesL
uocumenLs Lo
LxporL 6 4 7 Angola, Cameroon, Congo
1lme Lo LxporL 18 6 13 1a[lklsLan
CosL Lo LxporL 1,237 1,030 2,213 Chad
uocumenLs Lo
lmporL 7 3 8 CenLral Afrlca 8epubllc
1lme Lo lmporL 20 3 17 Chad
CosL Lo lmporL 1,346 1,313 2,273 Chad
27
H,;8- B5=#"

Topic Brazil
United
States
Difficulty Hiring:
Fixed-term contracts prohibited for permanent tasks? Yes No
Maximum length of a single fixed-term contract
(months) 24 No
Maximum length of fixed-term contracts, including
renewals (months) 24 No
Minimum wage for a 19-year old worker or an
apprentice (US$/month) 299.6 1242.6
Ratio of minimum wage to value added per worker 0.26 0.21
Rigidity of Hours:
Standard workday in manufacturing (hours) 8 8
Minimum daily rest required by law (hours) 11 N/A
Maximum overtime limit in normal circumstances
(hours) 2hrs N/A
Maximum overtime limit in exceptional circumstances
(hours) 4hrs N/A
Premium for overtime work (% of hourly pay) 50% 50%
50-hour workweek allowed for 2 months a year in case
of a seasonal increase in production? Yes Yes
Maximum working days per week 6 6
Premium for night work (% of hourly pay) in case of
continuous operations 20% 0
Premium for work on weekly rest day (% of hourly pay)
in case of continuous operations 100% 0
Major restrictions on night work in case of continuous
operations? Yes No
Major restrictions on weekly holiday in case of
continuous operations? No No
Paid annual leave for a worker with 9 months of tenure
(in working days) 0 0
Paid annual leave for a worker with 1 year of tenure (in
working days) 26 0
Paid annual leave for a worker with 5 years of tenure (in
working days) 26 0
Paid annual leave for a worker with 10 years of tenure
(in working days) 26 0
Paid annual leave for a worker with 20 years of tenure
(in working days) 26 0
Difficulty of Redundancy:
Dismissal due to redundancy allowed by law? Yes Yes
Third-party notification if 1 worker is dismissed? No No
28
Third-party approval if 1 worker is dismissed? No No
Third-party notification if 9 workers are dismissed? No No
Third-party approval if 9 workers are dismissed? No No
Retraining or reassignment obligation before
redundancy? No No
Priority rules for redundancies? No No
Priority rules for reemployment? No No
Redundancy Costs:
Notice period for redundancy dismissal (for a worker
with 9 months of tenure, in salary weeks) 4.3 0
Notice period for redundancy dismissal (for a worker
with 1 year of tenure, in salary weeks) 4.3 0
Notice period for redundancy dismissal (for a worker
with 5 years of tenure, in salary weeks) 4.3 0
Notice period for redundancy dismissal (for a worker
with 10 years of tenure, in salary weeks) 4.3 0
Notice period for redundancy dismissal (for a worker
with 20 years of tenure, in salary weeks) 4.3 0
Notice period for redundancy dismissal (avg. for
workers with 1, 5 and 10 years of tenure, in salary
weeks) 4.3 0
Severance pay for redundancy dismissal (for a worker
with 9 months of tenure, in salary weeks) 1.2 0
Severance pay for redundancy dismissal (for a worker
with 1 year of tenure, in salary weeks) 1.7 0
Severance pay for redundancy dismissal (for a worker
with 5 years of tenure, in salary weeks) 8.3 0
Severance pay for redundancy dismissal (for a worker
with 10 years of tenure, in salary weeks) 16.6 0
Severance pay for redundancy dismissal (for a worker
with 20 years of tenure, in salary weeks) 33.3 0















29
M," B5=#"


















*Theie aie no taxation oi taiiff tieaties with the 0S on iecoiu.












LaLln Amerlca
& Carlbbean
unlLed
SLaLes
8razll PlghesL
aymenLs 32 11 9 ukralne
1lme 382 187 2,600 8razll
roflL 1ax 19.9 27.6 22.4 Congo
Labor 1ax & ConLrlbuLlons 14.6 10.0 40.9 8elglum
CLher 1axes 13.2 9.1 3.8 Congo
1oLal 1ax 8aLe 47.7 46.7 67.1 Congo
Su
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0vei all, Biazil ianks numbei 42 in the woilu taking into account its
economy, entiepieneuiship oppoitunity, goveinance, euucation, health, safety &
secuiity, peisonal fieeuom anu social capital.
6


7


6
. Citation: . "The 2u11 Legatum Piospeiity Inuex Table Rankings." 0veiall Piospeiity Rankings. Legatum
Piospeiity Inuex, 2u1u. Web. 2S Api 2u12. <http:www.piospeiity.comiankings.asp&xgt;.

7
. "Ease of Boing Business in Biazil." F#%(4 '-5%(755. Woilu Bank uioup, 2u12. Web. 26 Api 2u12.
<http:www.uoingbusiness.oiguataexploieeconomiesbiazil>.


unlLed
SLaLes
8razll
CF"6 =++ 94#G%#, HI A@
Lconomy 18 32
LnLrepreneurshlp CpL. 3 48
Covernance 9 32
LducaLlon 13 72
PealLh 1 30
SafeLy & SecurlLy 26 69
ersonal lreedom 12 22
Soclal CaplLal 9 39