Brazilian history begins with the indigenous peoples who inhabited the region for millennia. In 1500, Portuguese explorers led by Pedro Álvares Cabral arrived, establishing colonial rule. The exploitation of native resources and the introduction of African slavery shaped the economy. In 1822, Brazil gained independence from Portugal, and Dom Pedro I became Emperor. The country abolished slavery in 1888, transitioning to a republic in 1889. The early 20th century saw industrialization and military rule, culminating in a military dictatorship from 1964 to 1985. Democracy was restored in 1985, leading to political and economic reforms.

Brazil operates as a federal presidential democratic republic. The President serves as both head of state and government, elected through a popular vote for a four-year term. The National Congress consists of the Federal Senate and the Chamber of Deputies, responsible for legislative functions. The judiciary is independent, and the country practices multi-party politics.

Brazil's economic history is marked by cycles of prosperity and challenges. During the colonial period, it thrived on sugar and gold exports, followed by coffee in the 19th century. Industrialization began in the early 20th century, fueling growth. However, the 1980s saw debt crises and inflation. In the 1990s, the government implemented significant economic reforms, including privatization, trade liberalization, and a shift towards a more open-market economy. These changes brought stability, reduced inflation, and attracted foreign investment. Brazil's vast natural resources, diversified industrial sector, and a booming agricultural output further contributed to its economic growth and global prominence.

Presently, Brazil is a major player in the global market, boasting abundant natural resources, a diversified industrial sector, and a large agricultural output. Brazil is one of the world's largest economies, with a Gross Domestic Product (GDP) ranking among the top ten globally. It is a major exporter of agricultural products, minerals, and manufactured goods. However, the nation grapples with income inequality, corruption, and infrastructure issues, hindering its full economic potential.