Brazil leads the world in fuel-alcohol production. The industrial sector has grown greatly in recent years. Brazil is rated second in world iron- ore production and fifth in the production of motor vehicles. Other important industrial products are textiles, chemicals, and cement. Most of Brazil's electric power is generated at hydroelectric installations.
Brazil is self-sufficient in most foodstuffs and consumer goods.
Despite its size, the Brazilian economy suffers from a number of problems. In February 1986, an economic stabilization plan was implemented that has considerably lowered the inflation and unemployment rates. The monetary unit is the real. There is a large disparity between the upper and lower classes in Brazil. There is a growing middle class, however, and telephones and automobiles are becoming more common among this group.