Brazil Economic History

Brazil Economic History includes many economic changes that came in Brazil's economy over a period of time. From the discovery of Brazil (1500) to the 1930s the Brazilian economy depended on the production of primary products and their exports.

The colonial rule left a long lasting effect on Brazil's economy and it almost stopped the wheels of development. In the 1930's some important decisions were taken to change Brazil into a semi industrial society. Basically small industries like textile industries began to crop up during this period. Brazilian economy began to stabilize with the abolition of slavery and establishment of republican regime Brazil saw a new phase of development.

As per the Brazil Economic History, In the 1950s and 1970s the industrialization process began in Brazil leading to the establishment of many industries like petrochemical, steel, automobile and other significant infrastructure projects. Until 1974 Brazil's GDP was among the highest in world ranking (7.4%). But Brazil was absorbed into excessive liquidity from Japanese, European and U.S. Banks in the 1970s.Between the 1970s and1980s, Brazil had an impressive GDP (8.5%).The per capita income increased to US $ 2,000 in 1980.

In the early half of 1980s Brazil was forced to make economic adjustments due to the increase in the interest rate in the world market. But the economic output continued to grow. In 1990s many economic reforms were undertaken. It includes tax reform, privatization, deregulation, strict fiscal policy, trade liberalization and a structural and legal framework was set up to attract foreign investment. In the Steel and fertilizer sectors privatization process accelerated. Due to the adoption of trade reforms Brazil became an open economy. There were no quantitative restrictions on imports. Most of the Brazilian exports are absorbed by

• Asia (16%)
• MERCUSOL (14%)
• ALADI ( 10% )
• Middle East (10%)
• North America (22%)

Brazil Economic History experienced various phases.