Brazil's Economic Crisis: A Tough Road Ahead

Brazil’s economy had experienced sharp ups and downs in its 25 years of growth (1990-2015). In the early 1990s, inflation moved above 2,000%; and it was dispelled with the introduction of a new currency in 1994. The Brazilian economy grew strongly, supported by reforms in the late 1990s and early 2000s. At the same time, the commodity and export boom helped the Brazilian government to channelize the resources at its disposal to redistribute income. Many investors agreed that Brazil was a growth engine for the BRIC (Brazil, Russia, India, and China) emerging market economies in the early 2000s. During this period, Brazil enjoyed such a comfortable economic position that it even managed to lend US$10 billion to IMF (International Monetary Fund) to increase the availability of credit facility for developing nations. ..