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Defense Sector

Brazil has been developing considerable capacities in strategic areas such as space, nuclear and cyber security. The short-term outlook for Brazil’s defense budget and foreign acquisitions has soured over the past year as shrinking budgets and a depreciating currency have cut Brazil’s ability to effectively arm the Brazilian Armed Forces as well as execute the strategic projects as proposed.   The longer-term outlook, however, remains strong as many of the strategic projects will require cooperation and collaboration with foreign firms. 

Brazil's 2017 budget law proposal for the defense sector is R$94.8 billion (approximately US$27 billion). According to Minister of Defense presentation to the National Defense and Foreign Relations Committee, the total value of the defense projects in the PAC program is approximately R$ 122 billion (around US$34.8 billion), which up to now, R$27 billion (US$7.7 billion) have been already invested and R$95 billion (US$27 billion) still to be employed.  In 2017 Brazil will continue under economic adjustment. The defense strategic projects in the PAC program, such as the development of submarines with nuclear propulsion, FX-2 project, the launch of satellites together with the Ministry of Communications and the projects that are in charge of the Brazilian Army will continue move forward in a slow pace concurring with the finance resources.

For additional information, please read the Brazil Country Commercial Guide or contact the U.S. Department of Commerce.


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