World Economy

Brazil GDP to Rise

Brazil GDP to RiseBrazil GDP to Rise

The OECD published its Brazil 2018 survey just as the country released figures showing its economy grew 1% last year, its first year of expansion since 2014, reported. The OECD report predicted Brazil’s GDP growth would pick up to 2.2% this year and 2.4% in 2019. This is a walking dead recovery for an economy emerging from its worst recession in history and looking to at least return to its previous size. Brazil has undertaken some reforms, says Jens Arnold, one of the authors of the report. These include reducing the subsidy implied in loans from development bank BNDES. If Brazil is to rediscover its animal spirits, the next government will have to become a champion at unwinding more of the economy’s terrible distortions, starting with pensions.

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