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Brazilian economy, severe recession, Abertura, Brazilian government, Arab nations

Abertura was complicated by growing economic problems with roots going back to the enormous industrial and economic expansion of the late 1960s and early 1970s. This expansion had made the country heavily dependent on petroleum, much of which was imported. When Arab nations began limiting oil exports in October 1973, the price of oil skyrocketed, seriously crippling the Brazilian economy. The regime had already borrowed heavily to finance the so-called Brazilian miracle. To keep the economy going, and to avoid a recession, the Brazilian government borrowed billions from international agencies and banks to finance continued growth. The Brazilian foreign debt went from about $25 billion in 1974 to more than $100 billion in the early 1980sat that time the largest foreign debt in the world. Inflation continued its upward trend, reaching levels far higher than during the crisis of 1963 and 1964. In 1982 Brazil halted all payments on the principal of its huge foreign debt, and the economy entered a severe recession.

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Brazilian economy, severe recession, Abertura, Brazilian government, Arab nations, economic expansion, oil exports, upward trend, economic problems, Inflation, billions, roots, regime, banks, principal, petroleum, crisis, levels, payments, world, country, time


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