With over 90 percent of the world experiencing slow economic growth, uncertainty filled the corridors of the International Monetary Fund (IMF) and the World Bank during the 2019 Annual Meetings. Over the space of a week, leaders and experts from all over the world gathered in Washington D.C. to seek solutions for this widespread economic stagnation.
The situation in Brazil is especially worrisome, said IMF Chief Economist Gita Gopinath. The international organization announced the country is expected to grow only 0.9 percent in 2019—a substantial drop compared to initial predictions of 2.5 percent. Ms. Gopinath went on to say that while Brazil has seen some recovery since the 2015 recession, “more needs to be done.”
To overturn the current scenario, both the World Bank and IMF recommended the country build a stronger trade system and increase international cooperation. The IMF suggested that the potential EU–Mercosur free-trade deal—along with adherence to Organization for Economic Co-operation and Development (OECD) standards—could make Brazil a more business-friendly nation.
Still, for some economists, the benefits of opening the country up to trade goes beyond reviving growth and invigorating productivity levels. Martín Rama, the World Bank Chief Economist for...
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