1. Ministry of
Finance
B R A Z I L I A N G O V E R N M E N T
Brazilian Economic
OUTLOOK
14
th
Special Edition | February | 2012

3. Ministry
of Finance
Summary
Foreword 7
Economic Activity 9
Employment and Income 33
Inflation 45
Interest Rates and Credit 57
Fiscal Policy 75
External Sector 91
Special Edition | Year 2011
International Overview 109
Special Section – Brazil: A Decade of Progress 135
Glossary 154
3

5. NOTE
Brazilian Economic Outlook is published by the Ministry of Finance.
The report consolidates and updates the main macroeconomic
variables resulting from the economic policy conducted by the
following Secretariats from the Ministry of Finance: Economic Policy
Secretariat (SPE), National Treasury Secretariat (STN), International
Affairs Secretariat (SAIN), Secretariat for Economic Monitoring
(SEAE) and Federal Revenue Secretariat (RFB).
Data used in this report were updated by February 2nd, 2012.

7. Ministry
of Finance
2011 at a glance and prospects for 2012
Foreword
In the global context, 2011 was affected by the worsening of the 2008 financial crisis, sovereign debt problems
within the Eurozone and the political gridlocks in the U.S. The quantitative easing policy fostered by the United
States and Europe turned out to put upward pressure on commodity prices, fueling global inflationary process
and leading to the breaching of inflation targets in most inflation targeting countries.
The Brazilian government acted promptly to quell the acceleration of prices via macro-prudential and fiscal
measures. It’s worth noting the fiscal consolidation program issued early in 2011, which helped to meet the
full primary surplus at the end of the year and had a decisive role in the monetary easing process. In the FX
market, the management of capital inflows has been recognized by international experts and agencies, and it
has helped price stabilization policy in Brazil, in addition to financial stability.
In 2011, the success of the economic growth model adopted by the Brazilian government included several
important measures, such as: new stages of “PAC” investment and strategy program, and “Minha Casa, Minha
Vida” housing program; expansion of the “Bolsa Familia” conditional cash transfer program along with the
“Brasil sem Miseria” program; the new industrial policy in the “Brasil Maior” plan; expansion of the “Simples”
tax regime for microenterprises; “Pronatec” program aiming technical and professional qualification of workers
and “Crescer”, a productive-oriented microcredit program. Furthermore, several measures of bureaucratic
Special Edition | Year 2011
rightsizing and modernization were taken by the Internal Revenue Service and the National Treasury. It is still
worth mentioning the consolidation of a long-term minimum wage increase policy, with a real increase of
66% since 2003, reaching R$ 622 in January 2012.
As a result of the growth model, Brazil has become the world’s 6th largest economy. Forecasts from international
agencies indicate that the country may be the 5th largest world power in the near future. The year of 2012 has
7

8. Ministry
of Finance
started with a more competitive exchange rate, lower interest rates, sound fiscal and financial institutions, low
Foreword
unemployment, controlled inflation, high consumer and business confidence, along with a strong portfolio of
public and private investments for the coming years in various sectors of the economy.
For 2012, the Federal Government will work to support the well-succeeded growth model, encouraging public
and private investments in infrastructure and industry, increasing professional qualification, and substantially
reducing extreme poverty.
Special Edition | Year 2011
8

9. Brazilian Economy
OUTLOOK
Economic
Activity
Ministry of
Finance
B R A Z I L I A N G O V E R N M E N T

10. Ministry
of Finance
Economic growth even under worsening international crisis
Economic Activity
By the third quarter of 2011, government policies and international crisis worsening have put the Brazilian economy into
a process of accommodation. From that time on, policies have been gradually withdrawn, especially those for easing
economic activity. Late in 2011, the country’s economic performance started to rebound even under the aggravation in
the international landscape. Such recovery can be seen through the economic indicators such as Economic Activity Index
of the Central Bank of Brazil, industrial production and energy consumption.
The quality in 2011 GDP growth has been even more important than its expansion pace. Investment has grown faster
than household and government consumptions, which indicates increase in the productive capacity higher than demand
in the coming years. Thus, the Government announced a set of measures in 2011 focusing on the strengthening of the
domestic industry. Such policy is called “Plano Brasil Maior” filled with tax proposals, trade policy and a wide workforce
qualification program.
It’s also worth mentioning the vigorous growth of “PAC” investment and strategy program, from R$ 29.7 billion in 2010
to R$ 35 billion in 2011. The disbursements of “Minha Casa, Minha Vida” housing program amounted to R$ 41.4 billion,
compared to R$ 37.2 billion in 2010.
Special Edition | Year 2011
10

11. Ministry
of Finance
A sustainable economic growth in Brazil
Economic Activity
The year of 2011 was important to consolidate the Brazilian long term growth path in an environment of
international growth slowdown. After a lower growth in 2011, the Brazilian economy will grow faster in
2012. Since investments will come from both private and public sectors, the average growth rate until 2014
will be higher than previous four years.
GDP Growth (% YoY)
International International International 7.5 International
Crisis Crisis Crisis Crisis
6.1
5.7
5.2
4.3 4.8%
4.0 4.6% Average
3.2 Average
5.5 6.0
Special Edition | Year 2011
5.2
2.7 4.5 Data: % annual
3.5% 3.2
Average
1.7% * 2011: IBGE data accumulated in
0.3 Average the first three quarters over the
0.0 same period in 2010
1.3 1.1
** Ministry of Finance estimates
-0.3
Source: IBGE and Ministry of Finance
Elaboration: Ministry of Finance
98
99
00
01
02
03
04
05
06
07
08
09
10
*
**
**
**
11
12
13
14
19
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
11

12. Ministry
of Finance
Index indicates growth in the economic activity
Economic Activity
According to the IBC-BR (Economic Activity Index of Central Bank of Brazil), there has been a 1.15%
expansion in November 2011 compared to the previous month. Therefore, a positive change is expected in
the third and fourth quarters of the year.
Economic Activity Index (index number, seasonally adjusted)
150
140.19
135
120
Special Edition | Year 2011
105
Data: index number, seasonally
adjusted (2002=100)
90
Source: Central Bank of Brazil
10
06
03
04
8
09
No 11
11
7
3
05
00
0
00
Elaboration: Ministry of Finance
20
20
20
20
20
20
20
20
20
l2
c2
ay
p
n
v
n
r
v
g
ct
Ju
Se
Ap
De
No
Au
Ja
Ju
M
O
12

13. Ministry
of Finance
Industrial production
Economic Activity
Industrial production grew 0.3% in 2011 below the 10.5% posted in 2010. In the first three months of the
year, there was a general increase in the level of production due to the expansion pace in 2010. In 2011, the
main highlights are the transportation sector and the capital goods industry as a whole, with a 3.3% hike
in annual terms.
Industrial Production Index (index number, seasonally adjusted)
135
127.7
124
113
Special Edition | Year 2011
102
91 Data: index number, seasonally
adjusted (average 2002=100)
80
Source: IBGE
09
10
11
06
08
1
07
08
01
Elaboration: Ministry of Finance
20
20
20
20
20
20
20
c2
ct
De
O
13

14. Ministry
of Finance
Retail sales growth slows down
Economic Activity
In the accumulated 12 months up to November, retail sales grew 7.0% and broad retail sales grew 7.7%.
For the whole 2011, the sector’s performance should be less than in 2010, when it accumulated respective
increases of 10.9% and 12.2%.
Retail Sales Volume (%, 12-month basis)
Total Per Sector
16 18.6
Equip. and mat. to esc., inf. and communication Retail Monthly Survey
14 Furniture and household 16.9
Art Farm., Doctors. ort. of perf. and cosm 10.4
Retail Monthly Survey
12 (Broad)*
Material of construction 10.0
10 Books, newspapers, magazines and stationery 9.0
Retail Sales Per Sector
7.7
8 Vehicles, motorcycles, parts and accessories 8.4 Data: % in a 12-month basis up
Special Edition | Year 2011
Textiles, apparel and footwear 5.0 to November 2011
6 7.0 Other personal and household articles 4.8
4
* Including automobiles,
4.2
Hyper&Supermkt, Food, Beverages and Tobacco
motorcycles, parts and pieces,
4.2
2 Hypermarkets and supermarkets
and construction materials
Fuels and lubricants 2.1
0
Source: IBGE
M 009
M 010
Ap 008
Se 009
S e 10
11
g 1
v 11
Au 01
Elaboration: Ministry of Finance
20
20
No 20
2
2
2
r2
2
p
p
v
ar
ar
No
14

15. Ministry
of Finance
Capacity utilization slows down in 2011
Economic Activity
In line with the slowdown in industrial activity throughout the year, indicators of the Installed Capacity
Utilization (NUCI) showed some decline in 2011. For 2012, more positive economic performance figures
are expected and are likely to be reflected in a more intense capacity utilization of the domestic industry.
Installed Capacity Utilization Level (%, seasonally adjusted)
89
87
85
83 83.4 NUCI - CNI
Special Edition | Year 2011
81.5 NUCI - FIESP*
81
80.9 NUCI - FGV
79 Data: %, seasonally adjusted
77 * Covering the industry of
São Paulo only
75
Source: CNI, Fiesp and FGV
Se 07
Se 08
Se 09
Se 10
v 1
06
n 7
n 8
n 9
n 0
M 07
M 08
M 09
M 10
M 11
De 011
1
No 201 Elaboration: Ministry of Finance
0
0
0
1
01
20
20
20
20
20
20
20
20
20
20
20
20
20
20
2
c2
ay
ay
ay
ay
ay
p
p
p
p
p
n
Se
Ja
Ja
Ja
Ja
Ja
15

16. Ministry
of Finance
Capacity utilization per sector
Economic Activity
The process of accommodation of the economy had a slight decrease in its capacity utilization indexes.
However, the sectoral levels have been within regular economic activity conditions.
Installed Capacity Utilization Level per Sector (%, seasonally adjusted)
NUCI per Setor Dec 2010 Dec 2011 Average by Sector*
NUCI per Sector 84.9 83.4 82.6
General Industry 90.3 88.6 84.6
Construction material 91.2 87.1 84.5
Non-metallic minerals 90.1 86.6 81.5
Material of Transport 85.2 86.3 84.7
Clothing and Footwear 89.2 85.9 80.8
Durable goods 78.3 85.0 76.7
Electrical equipment 85.2 84.5 82.0
Mechanics 88.8 84.4 83.7
Plastic products 84.5 83.3 80.4
Special Edition | Year 2011
Capital goods 83.1 83.0 82.1
Food 85.0 82.9 80.3
Consumer goods 80.2 81.5 78.2
Other products 74.5 69.9 69.5
Pharmaceutical products 92.1 91.7 92.3
Pulp and Paper 85.0 84.1 84.5
Chemistry 85.9 83.8 86.2 Data: %, seasonally adjusted
Intermediate goods 89.3 83.6 88.5
Metallurgy 86.4 83.1 86.5 * Period: 2000-2011
Textiles 82.0 79.8 79.9
Source: FGV
Non-durable goods 75.1 75.8 77.8
Elaboration: Ministry of Finance 16
Furniture 75.1 75.8 77.8

17. Ministry
of Finance
Confidence in the Brazilian economy remains positive
Economic Activity
The Industry Confidence Index has stabilized since November, closing at 101.8 points in 2011. In January
2012, there was an even better performance (102.3 points). On the other hand, consumer confidence
ended the year at 119.6 points and reached 116.0 in January. Despite the marginal decline, the indicator is
still at optimistic levels and a gradual recovery for the industry is expected in 2012.
Industry and Consumer Confidence Indexes (points, seasonally adjusted)
130
120
116.0
110
Special Edition | Year 2011
Optimistic 102.3
100 Pessimistic
Consumer Confidence Index
90 Industry Confidence Index
Data: points, seasonally adjusted
80
Source: FGV
n 10
n 11
No 20 0
No 20 1
Ap 20 0
Ap 20 1
M 20 0
ay 10
c 10
c 11
M 20 0
Au l 20 0
g 10
M 20 1
ay 11
M 20 1
Au l 20 1
g 11
12
O 20 0
O 20 1
n 10
n 11
v 10
v 11
ct 1
ct 1
ar 1
ar 1
b 1
r 1
Ju 201
b 1
r 1
Ju 201
Se 201
Se 201
Ju 20
Ju 20
Elaboration: Ministry of Finance
Fe 20
De 20
De 20
Fe 20
20
Ja 20
Ja 20
p
p
n
Ja
17

18. Ministry
of Finance
New record for the Brazilian harvest in 2011
Economic Activity
The agricultural production in Brazil reached a record of 163 million tons of grains in 2011, an increase of 9.2%
when compared to the previous year. The result consolidates Brazil as one of the world’s leading food producers.
Brazilian Grain Crop - Cereal grains, vegetables and oilseeds (millions of tons)
200
163.0
150 149.3
144.1
135.1
Special Edition | Year 2011
131.8
123.2 119.1 122.5
114.7
100 96.8
Data: millions of tons
50 Source: CONAB/MAPA
2
3
4
5
7
8
9
0
1
6
/0
/0
/0
/0
/0
/0
/0
/1
/1
/0
Elaboration: Ministry of Finance
01
02
03
04
06
07
08
09
10
05
20
20
20
20
20
20
20
20
20
20
18

19. Ministry
of Finance
Harvest Plan fosters agricultural dynamism
Economic Activity
The 2011/2012 Agriculture and Livestock Plan reached a total of R$ 123.2 billion, an increase of 6.2%
compared to the previous crop. From this total, R$ 107.2 billion is directed to business agriculture and R$ 16
billion to family farming. The resources will be used to operation funding, investment, trading, insurance
premium subsidy to rural areas and support to sustainable agronomic practices.
Rural Financing Program (R$ billion)
150
123.2
116.0
120 108.0
16.0
16.0
15.0
90 78.0
70.0
Special Edition | Year 2011
63.0 13.0 Total
56.9 12.0
60 46.5 Family Agriculture
9.0
10.0 16.0
32.6 7.0
Commercial Agriculture
24.7
30 5.4 Data: R$ billion
4.2
* Including other credits
20.5 27.2 39.5 44.4 50.0 58.0 65.0 93.0 100.0 107.2
0
Source: CONAB/MAPA
03
04
05
*
*
8
9
0
1
2
06
07
/0
/0
/1
/1
/1
Elaboration: Ministry of Finance
2/
/
/
03
04
07
08
09
10
11
5/
/
06
0
0
20
20
20
20
20
20
20
20
20
20
19

20. Ministry
of Finance
Investments growing larger than GDP
Economic Activity
Since 2004, investment growth rates have been higher than GDP growth, with the exception of 2009. The
result is a higher production capacity able to meet an increasing domestic demand. For the following years,
the growth model adopted by the Federal Government will give even greater emphasis on investment in
all sectors of the economy.
GDP and Investment – GFCF (% YoY)
25
20
15
Investment (GFCF)
10 GDP
Special Edition | Year 2011
Data: % annual
4.0
3.6
5
3.2
3.2
13.9
13.6
21.3
10.8
* Ministry of Finance estimate
1.1
9.1
5.7
9.8
6.1
5.2
7.5
5.3
4.5
0
Source: IBGE
-4.6
-6.7
-0.3
-5 Elaboration: Ministry of Finance
-10
**
03
04
05
06
08
09
0
*
07
11
12
1
20
20
20
20
20
20
20
20
20
20
20

21. Ministry
of Finance
Participation of investments in GDP on an upward trend
Economic Activity
The opportunities in the Brazilian economy and the measures taken to encourage long-term investment
will enlarge the contribution of investment to economic growth, which is expected to reach 20.8% of GDP
in 2012.
Investment – GFCF (% of GDP)
25
20
15
Special Edition | Year 2011
10
5 Data: % of GDP
16.4 15.3 16.1 15.9 16.4 17.4 19.1 18.1 19.5 19.6 20.8 * Ministry of Finance estimate
0
Source: IBGE
02
3
4
5
6
07
08
9
0
*
*
11
12
Elaboration: Ministry of Finance
0
0
0
0
0
1
20
20
20
20
20
20
20
20
20
20
20
21

22. Ministry
of Finance
Investments of PAC on a rise
Economic Activity
The second stage of the Growth Acceleration Program (PAC 2) aims to provide infrastructure through
investments near R$ 1 trillion within 2011-2014. Nearly 50% of the total will be directed to investments in
energy and 30% in “Minha Casa, Minha Vida” housing program. Investments in energy and transportation
sectors have already been established from 2014 on.
PAC 2 (R$ billion)
PAC 2
Axes 2011-2014 After 2014 Total
PAC Better city 57.1 57.1
PAC Citizenship Community 23.0 23.0
Special Edition | Year 2011
PAC My House My Life 278.2 278.2
PAC Water and Light for All 30.6 30.6
PAC Transportation 104.5 4.5 109.0
PAC Energy 461.6 626.9 1,088.5
Data: R$ billion
Total 955.0 631.4 1,586.4 Source: MPOG
Elaboration: Ministry of Finance
22

23. Ministry
of Finance
PAC commitment will grow 20% in 2012
Economic Activity
The amounts committed to PAC increased significantly, reaching R$ 35.4 billion in 2011. It represents a
growth of almost 20%, when compared to 2010, and a 121.3% expansion between 2007 and 2011. In line
with the economic growth model based upon investments, a 20.3% expansion has been estimated for
2012, reaching R$ 42.6 billion.
PAC: Committed nominal values (R$ billion)
50
40
30
Special Edition | Year 2011
20
10 Data: R$ billion
16.0 17.0 27.1 29.7 35.4 42.6
* LOA 2012
0
Source: STN/Ministry of Finance
07
08
09
10
11
*
12
Elaboration: Ministry of Finance
20
20
20
20
20
20 23

24. Ministry
of Finance
“Minha Casa, Minha Vida”housing program: growth with social inclusion
Economic Activity
Since 2009, disbursements for the MCMV housing program have grown by 431% reaching R$ 37.2 billion in
2011, which is equivalent to 480,000 new homes in 2011 alone. In the period 2011-2014, two million new
units are expected to be built, with investments predicted to reach a total of R$ 142.3 billion.
Disbursement of MCMV Program (R$ billion)
50
Goal for the 2011 - 2014
period (MCMV 2): Minha Casa, Minha Vida 2
40 2 million homes
Accomplished 2011:
480 thousand homes
30
Special Edition | Year 2011
20
Data: R$ billion
10 7.0 30.4 37.2 41.3 31.6 32.2 * Caixa Econômica Federal
estimate
0
Source: Caixa Econômica Federal
09
10
11
*
*
*
12
13
14
Elaboration: Ministry of Finance
20
20
20
20
20
20 24

25. Ministry
of Finance
Investments for the World Soccer Cup
Economic Activity
In the coming years, the country will rely on investments in several sectors, including sports. A total of R$ 33
billion will be allocated in the implementation of the infrastructure for the World Soccer Cup in 2014. Most
will be directed to transportation projects, of which R$ 11.6 billion for urban mobility and R$ 5.5 billion for
ports and airports.
Investments to the 2014 World Soccer Cup (R$ billion)
Stadiums 5.7
Urban Mobility 11.6
Ports and Airports 5.5
Civil Infrastructure (Total) 22.8
Special Edition | Year 2011
Telecom and Energy 3.8
Security and Health 4.6
Hotels 1.9
Total Infrastructure 33.1 Data: R$ billion
Source: Ministry of Finance
Elaboration: Ministry of Finance
25

26. Ministry
of Finance
Brazil stands out in port investments
Economic Activity
Brazil has two of the largest projects of investment in ports in the world: the expansion of the Port of Santos
and the construction of the Açu Port in Rio de Janeiro, the largest venture investment in port in Latin America.
Nine Major Projects of Ports in the World* (US$ billion)
China Yangshan Port 8.0
Panama Panama Canal expansion 6.5
Netherlands Port of Rotterdam expansion 4.0
China Yangtze River dredging 3.6
Brazil 2.9 Port of Santos expansion (SP)
Special Edition | Year 2011
United Kingdom London Gateway Port 2.5
Data: US$ billion
Qatar 2.0 Ras Laffan Port expansion
Brazil 1.8 Açu Superport (RJ) * In the final stages of
preparation or in progress
Oman 1.0 Port of Sohar expansion
Source: CG-LA, Exame yearbook
2011-2012
Elaboration: Ministry of Finance
26

27. Ministry
of Finance
Investments in the Oil and Gas sectors
Economic Activity
Petrobras investments in building platforms and ship-oil-platforms are also highlights in the Oil and Gas
sectors. Together, they total US$ 40 billion.
Ten Major Projects in the Oil and Gas Sectors in the World* (US$ billion)
Australia Gorgon gas field 44.0
Australia Pilbara gas field 35.0
Australia Wheatstone gas field 30.0
Australia Ichthys gas field 30.0
Brazil Petrobras oil platforms (RJ-ES-SP) 25.0
Special Edition | Year 2011
Canada Keystone XL oil pipeline 20.0
Nigeria Trans-Saharan gas pipeline 20.0
Brazil 15.0 Petrobras platform ships (ES-RJ-SP) Data: US$ billion
Turkey 11.3 Nabucco gas pipeline * In the final stages of
preparation or in progress
Indonesia 10.0 Abadi gas field
Source: CG-LA, Exame yearbook
2011-2012
Elaboration: Ministry of Finance
27

28. Ministry
of Finance
Brazil has a wide investment program in transports
Economic Activity
Among the 16 largest investment projects related to transportation in the world, four of them are in Brazil:
two related to the expansion of its railway network, one for subway system and another to build highways
throughout the country.
Sixteen Major Transport Projects in the World* (US$ billion)
China New Kunming Airport 23.1
USA O´Hare airport modernization program 15.0
China Harbin-Dalian railroad 14.0
China Hong Kong-Zhuhai-Macau bridge 10.7
Malaysia Kuala Lumpur-Klang Valley railroad 10.3
USA 6.9 Railroad transportation (Colorado)
Brazil 6.7 Norte-Sul railroad (GO-MA-MG-MS-PA-SP-TO)
Vietnam 5.7 Nha Trang railroad
Special Edition | Year 2011
USA 5.3 Detroit river international bridge
China 5.0 Shangai-Hangzhou train
Brazil 4.3 São Paulo subway expansion Data: US$ billion
Vietnam 4.0 Hau river underground railroad
Brazil 3.8 São Paulo beltway, north section * In the final stages of
Vietnam 3.7 Ho Chi Minh City beltway preparation or in progress
Brazil 3.4 Transnordestina railroad (CE-PE-PI)
Source: CG-LA, Exame yearbook
2011-2012
Elaboration: Ministry of Finance
28

29. Ministry
of Finance
Significant investments in the electricity sector
Economic Activity
The energy sector is also a priority for the Brazilian government. Among the fifteen largest sector projects
in the world, six are located in Brazil, with emphasis on the construction of the Belo Monte power plant.
Fifteen Major Projects in the the Electricity Sector in the World*(US$ billion)
China Jiuquan wind power base 18.2
Brazil Belo Monte (PA) hydroelectric power plant 16.0
Brazil São Luiz do Tapajós (PA) hydroelectric power plant 12.6
USA Green Power Express transmission 12.0
China Yangjiang nuclear plant 10.2
Brazil Santo Antônio (RO) hydroelectric power plant 10.0
Brazil Jirau (RO) hydroelectric power plant 8.2
Special Edition | Year 2011
China Xiluodu hydroelectric power plant 6.8
Canada Pace River hydroelectric power plant 6.6
Canada Romaine hydroelectric power plant 6.5
China 6.3 Xiangjiaba hydroelectric power plant
Brazil Angra 3 nuclear plant 6.3
Data: US$ billion
India 4.2 Mundra thermal power plant * In the final stages of
Colombia 3.0 Pescadero hydroelectric power plant preparation or in progress
Brazil 2.5 Teles Pires (MT-PA) hydroelectric power plant
Source: CG-LA, Exame yearbook
2011-2012
Elaboration: Ministry of Finance
29

30. Ministry
of Finance
Investments: High Speed Rail
Economic Activity
Investments for the construction of high-speed train linking the cities of Rio de Janeiro, Sao Paulo and
Campinas will total approximately R$ 35 billion. The model of transport will benefit the whole population.
High-speed Train: Investment and its composition (R$ billion and % of total)
High Speed 11.3%
Expropriations
Train (TAV)
9.8%
Systems and Equipment
Total: R$ 34.6 billion*
Special Edition | Year 2011
7.9%
Trains Data: R$ billion and % of total
Phase 1 Phase 2
71% * Estimated amounts subjected
6.7 billion 27.9 billion to changes
Civil Works
* Estimate data from 2009, subject to changes. Source: STN/Ministry of Finance
Elaboration: Ministry of Finance
30

31. Ministry
of Finance
Airport concessions generate more investments in the sector
Economic Activity
The investments scheduled for the airport sector in Brazil are close to R$ 3 billion, if only the concessions of
the airports in Brasilia, Guarulhos and Viracopos are considered. The licensing system will be important for
the private sector to take part in the growth process. The well-succeeded auction showed the great interest
of the private sector and its potential for profit.
Airport Concession: Planned Investments (R$ billion)
Brasilia Guarulhos Viracopos
Expansion of passengers New terminal building, Terminal building (first
terminal, land transport new taxiway, departure phase) and departure
networks, departures expansion. expansion.
Special Edition | Year 2011
and boarding area.
Planned Investments
2012 - 2014 2012 - 2014 2012 - 2014 Data: R$ billion
R$ 627 million R$ 1.38 billion R$ 873 million Source: STN/Ministry of Finance
Elaboration: Ministry of Finance
31

33. Brazilian Economy
OUTLOOK
Employment
and Income
Ministry of
Finance
B R A Z I L I A N G O V E R N M E N T

34. Ministry
of Finance
Social inclusion and job creation are the highlights in 2011
Employment and Income
The unemployment rate reached 4.7% in December 2011, the lowest level registered by IBGE (the Brazilian Bureau
of Statistics). Growth of formalization in the labor market is equally important. Since 2003, the economy has created
almost 17.3 million formal jobs. The performance is even more significant when contrasted with the adverse scenario
of the labor market in the world’s largest economies.
Economic growth with social and productive inclusion has oriented Government policies. In 2011, 325,000 new
households have started to collect the benefits from the “Bolsa Familia” conditional cash transfer program, totaling
13.3 million beneficiaries.
Special Edition | Year 2011
34

35. Ministry
of Finance
Income inequality in a continuous decrease
Employment and Income
The Gini index, used to measure income inequality, has been falling continuously in recent years. The
explanation comes from the reduction of inequality in labor income and from the minimum wage increase
policy, along with the income transfer programs and macro-economic stability.
Gini Income Index* (12- month moving average)
0.565
0.560
0.555
Special Edition | Year 2011
Data: 12-month moving average
0.550 * People over 10 years of age.
Based upon the per capita
income, considering the monthly
0.545 income of all types of work
0.541 effectively received
0.540
Source: IBGE
11
Au 09
09
De 09
Fe 09
Ap 10
Ju 10
Au 10
10
De 10
Fe 10
Ap 11
1
11
11
01
Elaboration: Ministry of Finance
20
20
20
20
0
20
0
20
20
20
0
20
20
20
c2
r2
c2
r2
g
n
g
ct
b
n
g
ct
b
n
v
Au
No
Ju
Ju
O
O
35

36. Ministry
of Finance
“Bolsa Família” cash transfer program helps to fight inequality
Employment and Income
“Bolsa Família” is considered one of the most efficient programs to reduce poverty focused on the poorest
of the population. The program has contributed significantly to the reduction of inequality, encompassing,
with a relative low cost, 13.3 million households in December 2011.
“Bolsa Família” Income Transfer Program (% of GDP, R$ billion and million of households)
20 0.5
17.0
0.4
15
13.3
0.3
Special Edition | Year 2011
10 Bolsa Família (% of GDP)
0.2 Bolsa Família (R$ billion)
Number of Households
5 (million)
0.1
Data: % of GDP, R$ billion
0.20 0.27 0.32 0.34 0.35 0.38 0.38 0.41 and million households
0 0.0
2004 2005 2006 2007 2008 2009 2010 2011* Source: MDS
Elaboration: Ministry of Finance 36

37. Ministry
of Finance
Real minimum wage increased more than 66% in the past 10 years
Employment and Income
The acceleration of economic growth in recent years has led to a relevant increase in the per capita income.
As a result of the Government’s policy, the minimum wage had an even more significant rise of 66%
between 2002 and 2012. In January 2012, it increased from R$ 545 to R$ 622, which will inject up to R$ 50
billion in the domestic market.
Real Minimum Wage Evolution (R$ - annual average in 2011 prices)
800
700
600
500 66%
owth
eal gr 1%
Special Edition | Year 2011
R th 21
400
nal grow
300 Nomi
200
Data: R$ - Annual average
100 in 2011 prices
200 240 260 300 350 380 415 465 510 540 545 622
0
Source: IPEA
02
03
04
05
06
07
08
09
10
11
11
12
20
20
20
20
20
20
20
20
20
20
20
20
Produced by: Ministry of Finance
r
r
ay
ay
r
r
ar
b
n
n
ar
n
Ap
Ap
Ap
Ap
Ja
Ja
Ja
Fe
M
M
M
M
37

38. Ministry
of Finance
A sharp decline in unemployment rate
Employment and Income
Even in a scenario of low economic growth, there has been a good performance in the labor market. There
was a decline of unemployment, which reached 4.7% in December 2011. It shows the dynamism of the
Brazilian economy in a scenario rather different from advanced economies.
Unemployment Rate (% of economically active population)
14
13
12
11
10
Special Edition | Year 2011
9
8
7
6
Data: % of economically
5 active population
4 4.70
Source: IBGE
9
10
11
03
04
5
06
07
08
20 2
1
0
0
n 0
01 Elaboration: Ministry of Finance
20
20
20
20
20
20
20
20
Ja c 20
c2
n
n
n
n
n
n
n
n
De
De
Ja
Ja
Ja
Ja
Ja
Ja
Ja
Ja
38

39. Ministry
of Finance
An overall drop in regional unemployment rates
Employment and Income
With regards to a regional analysis, it is important to highlight the unemployment rates in the cities of
Porto Alegre (3.1%), Belo Horizonte (3.8%) in December 2011. It’s worth mentioning the 2.2 p.p. decrease
in the unemployment rate in Recife, as a result of the new cycle of investments in Pernambuco state.
Regional Unemployment (% of economically active population)
20
18
16
Recife
14
Salvador
12
Belo Horizonte
Special Edition | Year 2011
10
Rio de Janeiro
8 7.7 São Paulo
6 4.9 Porto Alegre
4.7
4 4.7
3.8 Data: % of economically
2 3.1 active population
0
Source: IBGE
02
03
04
05
06
07
08
09
10
11
1
01
Elaboration: Ministry of Finance
20
20
20
20
20
20
20
20
20
20
c2
De 39