Synthesis of the Brazilian Economy

BRAZIL ECONOMICS - Report 06 May 2019 by Affonso Pastore and Cristina Pinotti

Following years of fiscal irresponsibility, leading to stagnant economic growth, an adjustment of the public accounts is a necessary condition for the country’s social stability. Faced with the challenge of defending unpopular measures, Bolsonaro has failed and at the same time precociously frittered away support for his government. The climate of insecurity and uncertainty has been charging its price on economic performance, scaring away investors and restraining consumers. The available numbers for the first quarter so far indicate that GDP probably contracted, making it hard to achieve growth of more than 1% for the year, meaning one more year of stagnant per capita income.

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