and drop in export (- 10,2%). Public consumption has increased by 4,2%. Stimulus package amounted to a 20,4 billion $ injection into the economy (1,2% GDP in 2009) was part of contra cyclical policy. It impacted economic activity through additional government spending (3,9% increase), tax cuts and subsidies. They created nominal deficit estimated at 3.2 per cent of GDP in 2009.
3.4 Export structure
Graph 5 Export Brazil by category in US $ (2000, 2009)
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: Selected classification: SITC Rev.3: 0 (Food and live animals), 1 Beverages and tobacco, 2 (Crude materials, inedible, except fuels), 3 (Mineral fuels, lubricants and related materials ), 4 Animal and vegetable oils, fats and waxes, 5 (Chemicals and related products), 6 (Manufactured goods), 7 (Machinery and transport equipment), 8 (Miscellaneous manufactured articles), 9 (Other)
Brazil export represents 14,32% of GDP on average in years 2003-2010. The total export more than doubled in 9 years. All selected commodities export have increased from year 2003 till 2010. The largest jumps in export experienced commodities: Food and live animals, Mineral fuels and Crude materials export (form almost 0 value to fifth most important export commodity); on the other hand the smallest increase in export experienced: Manufactured goods, Chemicals and related products and Machinery and transport equipment. Other four commodities groups are not very important for Brazil. br/>
Graph 6: Brazilian export of primary and manufactured goods and% of Brazilian export to China (2000-2011)
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Brazil s export earnings from manufactured goods continue to fall while those from primary goods continue to rise. In year 2009 export earnings from primary goods has taken over manufacturing goods earnings. Despite of political struggle to support manufactured goods export, they failed to do so. More than half of the $ 33bn year-on-year increase in Brazilian exports in the first three quarters of 2010 came from primary products. This was mainly driven by a sharp rise in the value of exports of iron ore and crude oil, which almost doubled from the same period last year. The main reason for this change is China, which became Brazil's largest trading partner, overtaking the US. Iron ore is now the biggest Brazilian export product (17% of total export, more than half goes to China). Analysts say Brazil must decide soon whether it is happy to be an exporter of low value-added goods or whether it wants to compete in markets for higher value goods.
7: Russian export
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: A: food, raw materials except petroleum and gas; B: Crude materials, inedible, except fuels; C: Petroleum; D: Gas; E: Manufactured goods without steel ...
