Brazilian economy at the beginning of the 21st century: deceleration, crisis, and de-industrialization (2000-2017)

Abstract

This article aims at discussing the hypothesis of absolute de-industrialization in Brazil, mainly from the second decade of the 21st century, when the country entered a cycle of deceleration and, subsequently, an economic crisis. In order to achieve these goals, the trajectory of the Brazilian economy was organized in cycles: the beginning of reversal (1999-2002), growth recovery (2003- 2006), growth acceleration (2007-2010), slowdown (2011-2014) and economic crisis (2015-2017). We used data from Gross Domestic Product (GDP), industrial production, external accounts, and jobs. The results indicate that the country is on its way to absolute de-industrialization since the cycle of deceleration, considering that it is possible to observe a decline in industrial production and low dynamism of GDP. The sectors of capital goods and durable consumer goods are the most affected, with dramatic reductions, in the face of the great recession.