What type of economy does Brazil have?


Quick Answer

Brazil's economy classifies as free market, which features an exchange of goods, services and commodities internally and with other nations. Brazil varies in degree of economic freedom; in the early 2000s, Brazil's economy classified as mostly free, then waned in status to a status of "mostly unfree" in the latter half of the decade.

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Full Answer

Despite the fluctuation in market freedom, Brazil's economy ranks among the top export economies in the world. Measurements of economic freedom include a series of factors. Trade, monetary, investment, banking and labor freedom comprise some of the elements used to determine the degree of freedom economies possess.

Brazil's economic output derives from several primary economic activities. Its warm climate and fertile soils make Brazil well-suited for agricultural operations. Agriculture ranks towards the top of primary economic activities. In addition, the sectors of mining, manufacturing and services contribute to Brazil's economic prosperity, too. Agricultural commodities derived from Brazil include coffee, wheat, rice, corn, sugarcane, cocoa and citrus fruits. The industry sector produces textiles, iron ore, steel, shoes and automobiles. Brazil, unlike many South American countries, contains a large and stable middle class. The Brazilian middle class supplies workers skilled in many areas, which accounts for some of its economic success.

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