Economy of the Empire of Brazil

Lore & Background

The Brazilian economy under the Empire was extremely diversified, with exports including sugar, cotton, coffee, leather, and rubber. Coffee rose from 18% of exports in the 1820s to 42% twenty years later, while sugar, cotton, and leather declined in relative share but increased in absolute volume. Exports doubled in volume and tripled in nominal value over that period, and the value in pounds sterling rose by over 40%.

Reader's Guide

The Empire of Brazil achieved notable economic growth, with GDP rising from about 50,000:000$000 in 1840 to 500,000:000$000 in 1889, an annual growth rate of 4.81%. International trade increased steadily, and the balance of trade became consistently positive from 1865. Brazil's exports in 1850 were the highest in Latin America, triple that of Argentina. The adoption of steam navigation and railroads, including the first line in 1854, contributed to faster and cheaper cargo transport. By 1889, there were 9,200 kilometers of railroad lines. The economy's per capita income in 1890 was $770 (1990 US dollars), and had productivity growth continued, Brazil's 1950 per capita income would have matched Western European averages.

Did You Know?

• The unit of currency was the real (plural réis), often called milréis, with 1,000 milréis known as a conto de réis.
• Brazil's first railroad line, only 15 kilometers, opened on 30 April 1854.
• Between 1821 and 1860, Brazil exported roughly 1.5 million tons of coffee; between 1861 and 1889, that reached about 3.5 million tons.
• Contrary to some claims, Brazil's GDP in 1890 was not 40% higher than Argentina's; standard estimates indicate Argentina's total and per capita GDP were comparable or higher at that time.