Brazil: Sustaining a Strong Recovery
IMF News, September 23, 2021
Source details
- Canonical URL
- Brazil: Sustaining a Strong Recovery
Other formats
Bibliographic details
- Published: September 23, 2021
Overview and current situation
- Brazil’s economy has returned to pre-pandemic levels.
- Recovery supported by booming terms of trade and robust private sector credit growth.
- One of the biggest stimulus packages in emerging markets—nearly 4 percent of GDP in emergency cash transfers alone in 2020.
- The country has been hit hard by the pandemic: COVID-19 has claimed the lives of more than 550,000 Brazilians, the second highest death toll worldwide.
- Renewed lockdowns following a severe second wave and the rollout of vaccinations have helped bring down infections since April, with new daily COVID-19 cases and deaths falling significantly from their peaks.
- Rates of unemployment and poverty remain high.
- Inflation has surged, weighing on the outlook.
Projections and growth
- Growth is projected to rebound to 5.3 percent in 2021.
Policy implications and recommendations
- Sustaining the recovery will require further institutional reforms to raise labor productivity growth.
- Policies needed to foster private sector-led investment.
September 23, 2021 — IMF News (IMF Press Center)