Synthesis of the Brazilian economy

BRAZIL ECONOMICS - Report 02 Mar 2020 by Affonso Pastore, Cristina Pinotti and Marcelo Gazzano

Due to predilection or incapacity, when faced with disputes Bolsonaro repeatedly chooses confrontation instead of searching for negotiated solutions. With this, instead of minimizing costs, he increases them, as can be seen in the current arm wrestling with Congress for budget resources. That strategy hampers the effort to achieve the reforms that are essential to control public spending and to put the country back on the path to sustainable growth. These run the gamut from tax to administrative reforms, passing through trade opening, without which industry will not resume growing. The expansion of the economy, which was disappointing at the end of last year, now faces a new threat from the effects on the global economy of the outbreak of Coronavirus disease. While the direction is unmistakable, the magnitude of the harm is highly uncertain, depending on the evolution of the disease’s contagion cycle and the reaction of the governments of the affected countries.

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