Synthesis of the Brazilian Economy

BRAZIL ECONOMICS - Report 04 Nov 2019 by Affonso Pastore and Cristina Pinotti

Fortunately, the rising attacks on institutions made by the Bolsonaro clan has been receiving the appropriate response from society and many members of the other branches of government, indicating that the path of radicalization is not supported by the vast majority of the population. Contrary to the intention of the authors, these strident aggressions have been working as a vaccine, strengthening convictions and reactions in favor of democracy. But important tests are still to come. Despite the headwinds from the international economy and the lack of dynamism of investments, consumption has been growing, sustaining economic recovery, albeit at a slow pace. The scenario of persistently low interest rates has been triggering expansion of credit, which is only not greater due to the fragile labor market.

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