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Brazil An emerging economy experiencing difficult times
Brazil's gross national income, which was about 1.753 trillion US dollars in 2022 (expressed in current US dollars), makes it one of the world's largest economies. The country has the greatest wealth of biodiversity anywhere in the world, the biggest remaining area of rainforest and also, with the Amazon, the largest river by discharge volume.
In international peace and security policy, in world trade, and above all in global forest conservation and climate action, Brazil plays an important role. The country has a key role in Latin America. Brazil is actively involved in the BRICS association of countries (Brazil, Russia, India, China and South Africa) and in the G20. Brazil has assumed the G20 Presidency for 2024.
The country's society and economy were hit very hard by the impact of the COVID-19 pandemic. However, the economy recovered relatively quickly from the slump caused by the pandemic. Growth in 2023 was almost 3 per cent. The forecast for 2024 is 1.7 per cent.
German development cooperation with Brazil
Because of its key role in international politics, Brazil is an important global partner for the Federal Ministry for Economic Cooperation and Development (BMZ). Because of the country's strategic significance for climate action and for protecting the environment and conserving biodiversity, cooperation with Brazil aimed at fostering sustainable development is accompanied by a close political dialogue.
The shared long-term overarching goal of Germany's cooperation with Brazil is the protection of global goods and global values in line with the Paris Agreement and the 2030 Agenda for Sustainable Development. In keeping with the principle of leaving no one behind, disadvantaged population groups and the protection of human rights – especially the rights of Indigenous Peoples and traditional communities – are a particular focus of German activities.
In December 2023, Brazil's President Luiz Inácio Lula da Silva and a number of his ministers visited Berlin. In that context, President Lula and Chancellor Olaf Scholz concluded a Brazilian-German Partnership for a Socially Just and Ecological Transformation. In the following areas, among others, the BMZ is making important contributions towards filling this Partnership with life: forest conservation, renewable energy, sustainable urban and economic development, and support for gender equality.
German-Brazilian cooperation focuses on the following core areas:
- Conserving nature and natural resources, protecting life on Earth
Areas of intervention: forests, biodiversity - Climate and energy, just transition
Areas of intervention: renewable energy and energy efficiency, sustainable urban development
In addition, the BMZ is also engaged in the fields of vocational education and training, and “green” financing.
In view of the country's own capacities, the main instrument on which German development cooperation with Brazil relies – apart from technical assistance and grants for Brazilian programmes and funds – is reduced-interest loans for measures to foster development.
In November 2023, Brazil received a commitment from Germany for funding of up to 561 million euros. This commitment consisted of 523.5 million euros for Financial Cooperation and 37.5 million euros for Technical Cooperation.
Triangular cooperation Sharing experience
Brazil is an important partner for the BMZ when it comes to supporting joint development programmes in third countries; this is known as triangular cooperation. Such programmes focus on the sharing of experience between an emerging economy, an industrialised country and a third, poorer country.
For instance, Germany and Brazil are jointly supporting programmes in Africa, Latin America and the Caribbean – in fields such as environmental technology, decentralised energy generation and agricultural production.
SDG trends for Brazil
- On track or maintaining SDG achievement
- Moderately improving
- Stagnating
- Decreasing
- Trend information unavailable