Brazil Economic Outlook
December 7, 2017A pickup in household consumption and an improvement in investment kicked the economic recovery into a higher gear in Q3. Low interest rates, recovering business sentiment and stronger dynamics in the labor market are buttressing activity. Leading data for Q4, moreover, continues to point towards a steadily improving economy. The manufacturing PMI hit a multi-year high in November, and both consumer and business confidence rose in the same month. While the economy is finally growing after the worst recession in its modern history, many challenges lie ahead, and severe macroeconomic imbalances need to be addressed. The government is embroiled in a last-ditch effort to pass a watered-down version of the pension reform bill before the end of the year—a measure that was first presented almost a year ago. The bill needs a three-fifths supermajority to pass parliament, and it is uncertain if President Michel Temer has the support needed; the window for economic reforms in the country is quickly closing ahead of the October 2018 elections.
Brazil Economic GrowthLow interest rates, improving confidence and historically-low inflation should fuel an acceleration in growth next year. Structural reforms, however, are key to a sustainable recovery and the reversal of the untenable level of public debt. FocusEconomics see the economy growing 2.4% in 2018, which is up 0.1 percentage points from last month’s forecast. In 2019, growth is seen edging up to 2.5%.
Brazil Economy Data
5 years of Brazil economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||10.14||-0.82 %||Dec 06|
|Exchange Rate||3.24||-0.13 %||Dec 06|
|Stock Market||73,268||-0.40 %||Dec 06|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Brazil Economic News
December 7, 2017
At its 6 December meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comité de Politica Monetaria) decided to cut the benchmark SELIC interest rate by 50 basis points, a smaller cut than at its previous meeting.
December 1, 2017
Conditions in Brazil’s manufacturing sector improved in November, reaffirming that the economic recovery is gaining steam.
December 1, 2017
Recently released GDP data confirmed that the long-awaited recovery has taken off in the crippled Brazilian economy.
November 29, 2017
Business sentiment in Brazil continued to climb in November, as it recovers from the lows of mid-2015.
November 28, 2017
The consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getúlio Vargas) increased a seasonally-adjusted 3.7% from the previous month in November.