US—Ambassador Richard MELTON; Embassy at Avenida das Nocoes,
Lote 3, Brasilia, Distrito Federal (mailing address is APO Miami 34030);
telephone [55] (6) 321-7272; there are US Consulates General in Rio de
Janeiro and Sao Paulo, and Consulates in Porto Alegre and Recife
_#_Flag: green with a large yellow diamond in the center bearing a blue celestial globe with 23 white five-pointed stars (one for each state) arranged in the same pattern as the night sky over Brazil; the globe has a white equatorial band with the motto ORDEM E PROGRESSO (Order and Progress)
_*Economy #_Overview: The economy, with large agrarian, mining, and manufacturing sectors, entered the 1990s with declining real growth, runaway inflation, an unserviceable foreign debt of $122 billion, and a lack of policy direction. In addition, the economy remained highly regulated, inward-looking, and protected by substantial trade and investment barriers. Ownership of major industrial and mining facilities is divided among private interests—including several multinationals—and the government. Most large agricultural holdings are private, with the government channeling financing to this sector. Conflicts between large landholders and landless peasants have produced intermittent violence. The government is seeking an IMF standby loan despite several failed agreements over the past decade. Relations with foreign commercial banks remain strained because of mounting interest arrears on Brazil's long-term debt. The Collor government, which assumed office in March 1990, is embarked on an ambitious reform program that seeks to modernize and reinvigorate the economy by stabilizing prices, deregulating the economy, and opening it to increased foreign competition. A major long-run strength is Brazil's vast natural resources.
_#_GDP: $388 billion, per capita $2,540; real growth rate - 4.6% (1990)
_#_Inflation rate (consumer prices): 1,795% (December 1990)
_#_Unemployment rate: 4.4% (1990)
_#_Budget: revenues $36.5 billion; expenditures $48.2 billion, including capital expenditures of $4.6 billion (1988)
_#_Exports: $31.4 billion (1990);
commodities—iron ore, soybean bran, orange juice, footwear, coffee
partners—EC 29%, US 23%, Latin America 10%, Japan 7% (1989)