Brazil: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil
IMF Staff Country Reports, August 3, 2018
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- Brazil: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil
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Bibliographic details
- Published: August 3, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484372449.002
Key findings and assessment
- A mild recovery supported by accommodative monetary and fiscal policies is currently under way in Brazil.
- The economy is underperforming relative to its potential.
- Public debt is high and increasing.
- Medium-term growth prospects remain uninspiring absent further reforms.
- Placing Brazil on a path of strong, balanced and durable growth requires:
- a committed pursuit of fiscal consolidation,
- ambitious structural reforms,
- a strengthening of the financial sector architecture.
- Following the severe recession in 2015-16, real GDP grew by 1 percent in 2017.
Growth projections and drivers
- Growth is projected to be 1.8 and 2.5 percent in 2018 and 2019, respectively.
- Projected growth is driven by a recovery in domestic consumption and investment.
- Recovery context: backdrop of tightening global financial conditions.
Fiscal position and public debt
- Public debt is characterized as high and increasing.
- Policy emphasis: committed pursuit of fiscal consolidation to place Brazil on a durable growth path.
Monetary policy and financial sector
- Current recovery is supported by accommodative monetary policy.
- Recommendation: strengthen the financial sector architecture to support balanced growth.
Structural reforms and labor market
- Ambitious structural reforms are required to improve medium-term growth prospects.
- Subjects highlighted include: Banking, Expenditure, External debt, Fiscal policy, Fiscal stance, Labor, Public debt, Wages.
Content in this bundle
- Country Report