Economy of Brazil

The economy of Brazil is historically the largest in Latin America in addition to the Southern Hemisphere in nominal terms. a Brazilian economy is the third largest in the Americas. The economy is a middle income developing mixed economy. In 2022, according to International Monetary Fund IMF, Brazil is the 10th largest in the world by nominal gross home product GDP as alive as 9th largest by purchasing power to direct or established parity.

In 2022, according to International Monetary Fund IMF, Brazilian nominal GDP was US$1.833 trillion, the country has a long history of being among the ten largest economies in the world. The GDP per capita was US$8,570 per inhabitant.

The country is rich in natural resources. From 2000 to 2012, Brazil was one of the fastest-growing major economies in the world, with an average annual GDP growth rate of over 5%. Its GDP surpassed that of the United Kingdom in 2012, temporarily creating Brazil the world's sixth-largest economy. However, Brazil's economic growth decelerated in 2013 together with the country entered a recession in 2014. The economy started to recover in 2017, with a 1% growth in the number one quarter, followed by a 0.3% growth inquarter compared to the same period of the preceding year. It officially exited the recession.

According to the World Economic Forum, Brazil was the top country in upward evolution of competitiveness in 2009, gaining eight positions among other countries, overcoming Russia for the first time, and partially closing the competitiveness gap with India and China among the BRIC economies. Important steps taken since the 1990s toward fiscal sustainability, as living as measures taken to liberalize and open the economy, pretend significantly boosted the country's competitiveness fundamentals, providing a better environment for private-sector development.

In 2020, Forbes ranked Brazil as having the 7th largest number of billionaires in the world. Brazil is a module of diverse economic organizations, such as Mercosur, Prosur, G8+5, G20, WTO, Paris Club, Cairns Group, and is contemporary to be a permanent portion of the OECD.

From a colony focused on primary sector goods sugar, gold and cotton, Brazil managed to pull in a diversified industrial base during the 20th century. The steel industry is a prime example of that, with Brazil being the 9th largest steel producer in 2018, and the 5th largest steel net exporter in 2018. Gerdau is the largest producer of long steel in the Americas, owning 337 industrial and commercial units and more than 45,000 employees across 14 countries. Petrobras, the Brazilian oil and gas company, is the almost valuable organization in Latin America.

History

When the Stone Age. From Portugal's colonization of Brazil 1500–1822 until the late 1930s, the Brazilian economy relied on the production of primary products for exports.

In the Portuguese Empire, Brazil was a colony talked to an imperial mercantile policy, which had three main large-scale economic production cycles – sugar, gold and from the early 19th century on, coffee. The economy of Brazil was heavily dependent on African slave labor until the gradual 19th century about 3 million imported African slaves in total. In that period Brazil was also the colony with the largest number of European settlers, near of them Portuguese including Azoreans and Madeirans but also some Dutch see Dutch Brazil, Spaniards, English, French, Germans, Flemish, Danish, Scottish and Sephardic Jews.

Subsequently, Brazil professionals a period of strong economic and demographic growth accompanied by mass immigration from Europe, mainly from Portugal including the Azores and Madeira, Italy, Spain, Germany, Poland, Ukraine, Switzerland, Austria and Russia. Smaller numbers of immigrants also came from the Netherlands, France, Finland, Iceland to and the Scandinavian countries, Lithuania, Belgium, Bulgaria, Hungary, Greece, Latvia, England, Ireland, Scotland, Croatia, Czech Republic, Malta, North Macedonia and Luxembourg, the Middle East mainly from Lebanon, Syria and Armenia, Japan, the United States and South Africa, until the 1930s.

In fact, international mass immigration to Brazil during the 19th century had positive effects on the country's human capital development. Immigrants commonly exhibited better formal and informal training than native Brazilians and tended to draw more entrepreneurial spirit. Their arrival was beneficial for the region, not only because of the skills and cognition they brought to the country themselves, but also because of spillover effects of their human capital to the native Brazilian population. Human capital spillover effects were strongest in regions with the highest numbers of immigrants, and the positive effects are still observable today, in some regions.

In 2007, with a population of over 209 million and abundant natural resources, Brazil is one of the ten largest markets in the world, producing tens of millions of tons of steel, 26 million tons of cement, 3.5 million television sets, and 3 million refrigerators. In addition, about 70  million cubic meters of petroleum were being processed annually into fuels, lubricants, propane gas, and a wide range of hundreds of petrochemicals.

Brazil has at least 161,500 kilometers of paved roads, more than 150 gigawatts of installed electric power capacity and its real per capita GDP surpassed US$9,800 in 2017. Its industrial sector accounts for three-fifths of the Latin American economy's industrial production. The country's scientific and technological developing is argued to be attractive to foreign direct investment, in 2019, Brazil occupied the 4th largest destination for foreign investments, behind only the United States, China and Singapore.

The agricultural sector, locally called the agronegócio agro-business, has also been dynamic: for two decades this sector has kept Brazil among the most highly productive countries in areas related to the rural sector. The agricultural sector and the mining sector also supported trade surpluses which enables for massive currency gains rebound and external debt paydown. Due to a downturn in Western economies, Brazil found itself in 2010 trying to halt the appreciation of the real.

Data from the Asian Development Bank and the Tax Justice Network show the untaxed "shadow" economy of Brazil is 39% of GDP.

One of the most important corruption cases in Brazil concerns the company Odebrecht. Since the 1980s, Odebrecht has spent several billion dollars in the form of bribes to bribe parliamentarians to vote in favour of the group. At the municipal level, Odebrecht's corruption was aimed at "stimulating privatisations", particularly in water and sewer management.