Synthesis of the Brazilian Economy

BRAZIL ECONOMICS - Report 05 Sep 2016 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

Now that the long impeachment process is over, it is beholden to President Michel Temer, freed from the constraints of interim status, to fulfill the promises made to those who supported him during that process and to burnish his biography as the person responsible for defining a new political cycle that did not repeat the errors of the previous one. If instead he succumbs to the seduction of running for reelection or does not have sufficient leadership to achieve the reforms that are essential to put the country on a path to fiscal solvency, the cycle now starting will frustrate expectations, with disastrous consequences for the incipient return of economic growth, among other negative effects. If this happens, the short period until the 2018 election will be marked by aggravation of the economic problems, producing imponderable effects on the political scenario.

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