The Brazilian economy posted 1.1 percent GDP growth in 2019—the worst performance since the country dug itself out of recession in 2017. While the numbers hardly came as a surprise, they were far below the initial median forecasts of 2 percent growth. This means that despite Congress passing labor and tax reforms in 2017 and 2019, the economy is still languishing at 2013 levels.
So, how can Brazil return to the path of true economic growth?
For economists, the answer is more reform. Data published by Brazil’s official statistics bureau indicate a very modest yet steady growth quarter after quarter, which would be consistent with a recovering economy. Growth was once again propelled by a 1.3-percent bump in two sectors: services and agribusiness, though the latter had its smallest growth in three years.
Industry rose a paltry 0.5 percent, but that could be considered as some good news given the 1.1-percent contraction in extractive industries, which plummeted in the aftermath of the Brumadinho dam...
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