## Brazil: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil

_IMF Staff Country Reports, August 3, 2018_

## Source details

**Canonical URL:** [Brazil: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Brazil](https://www.imf.org/en/publications/cr/issues/2018/08/03/brazil-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46154)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/08/03/brazil-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46154/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/08/03/brazil-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46154/index.json)
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## Bibliographic details
- Published: August 3, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484372449.002

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### 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.

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr18253.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr18253.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/08/03/brazil-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46154_