Brazil: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil
IMF Staff Country Reports, November 15, 2016
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- Brazil: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil
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Bibliographic details
- Published: November 15, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475553192.002
Economic conditions and recession
- The economy is still in its deepest recession in decades.
- The recession is partly the result of the failure of past policies.
- The recession has been aggravated by a political crisis that, until recently, paralyzed policymaking and further damaged confidence.
- Some high-frequency indicators suggest the recession may be nearing its end.
Political developments and governance
- President Rousseff was impeached for responsibility crimes related to fiscal practices on August 31.
- The government that took office in May will remain in charge until January 1st, 2019.
Market response and reform agenda
- Markets have responded positively to the new government’s reform agenda.
- Positive market response has bolstered asset prices and confidence.
- Brazil has benefited from a broader positive wave of sentiment toward emerging economies.
Risks and policy challenges
- Implementation of much-needed reforms to durably restore policy credibility is subject to risks.
- Policy credibility restoration depends on effective reform implementation amid political and economic fragility.
Subject coverage and keywords
- Subject: Banking, Expenditure, External debt, Fiscal policy, Fiscal stance, Inflation, Prices, Public debt
- Keywords: central bank's target, CR, Fiscal stance, floating exchange rate regime, GDP, Global, Inflation, inflation expectation, ISCR, market condition, policy, tolerance range