Synthesis of the Brazilian Economy

BRAZIL ECONOMICS - Report 04 Sep 2017 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

The end of the recession – sealed by two straight quarters of GDP growth – and the continuing decline of inflation, interest rates and unemployment, are positive signs offered by the competent economic team. However, on the political side the picture is the opposite. The president’s fragility, requiring him to spend his political capital just to remain in office, makes approval of the pension reform unlikely, aggravating the country’s fiscal situation even more, generating greater uncertainty and limiting investments and the strength of future growth.

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