## Brazil: Selected Issues

_IMF Staff Country Reports, July 13, 2017_

## Source details

**Canonical URL:** [Brazil: Selected Issues](https://www.imf.org/en/publications/cr/issues/2017/07/13/brazil-selected-issues-45082)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/07/13/brazil-selected-issues-45082/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/07/13/brazil-selected-issues-45082/index.json)
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## Bibliographic details
- Published: July 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484309919.002

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### Executive summary
- This Selected Issues paper examines the proximate causes of dramatic fall in investment in Brazil and the prospects for investment going forward.
- A variety of factors contributed to the investment decline, including deterioration in Brazil’s medium-term growth prospects, rising real interest rates, falling terms of trade, rising uncertainty related to economic policy, rising levels of corporate leverage and lower cash flow.
- Some of the factors that have weighed on investment over recent years have begun to normalize providing some impetus for a recovery.
- However, still-high levels of corporate leverage and the prospect of continued uncertainty related to economic policy settings suggest a turnaround in investment is likely to be subdued.

### Factors driving the investment decline
- Deterioration in Brazil’s medium-term growth prospects
- Rising real interest rates
- Falling terms of trade
- Rising uncertainty related to economic policy
- Rising levels of corporate leverage
- Lower cash flow

### Prospects for investment and near-term outlook
- Partial normalization of some adverse factors has begun, providing some impetus for recovery.
- Persistently high corporate leverage remains a constraint on investment.
- Ongoing uncertainty regarding economic policy settings implies the turnaround in investment is likely to be subdued.

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## Content in this bundle

- **Country Report**
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_Source: https://www.imf.org/en/publications/cr/issues/2017/07/13/brazil-selected-issues-45082_