What Type of Economic System Does Brazil Have?

Brazil, famous for its raucous Carnival celebrations, has a growing mixed economy.

Brazil is the largest country in South America, and its economy dwarfs that of other South American nations. Like many nations of the world, Brazil operates a mixed economy that includes characteristics of market-based capitalism, as well as socialist planning.

Features

The mixed economy of Brazil includes large agricultural, manufacturing and mining sectors. Although some industries, such as railroads and utilities, have been privatized, the government owns large stakes in other industries.

Identification

The Brazilian government owns more than 50 percent of Petrobras, the country's largest energy company.

Effects

Once burdened by high inflation in the 1980s, Brazil has asserted itself in the global economy. The CIA World Factbook reported that the country ran record trade surpluses from 2003 to 2007.

Size

In 2008, the gross domestic product (GDP) of the Brazilian economy was an estimated $2 trillion (in U.S. dollars), making it the 10th-largest in the world.

Significance

Privatization efforts by the Brazilian government in the 1990s brought a wave of investment from the United States and Europe, which contributed to robust economic growth over the past decade. In addition, prudent monetary and fiscal policy measures shielded Brazil from the worst of the global financial crisis of 2008, according to the U.S. State Department.

Considerations

Despite Brazil's economic progress, widespread poverty and government corruption remain problems.

References

• CIA World Factbook: Brazil

Resources

• Read this Article in Spanish
• U.S. State Department: Brazil Facts