Today, we discuss the risks facing Brazil — according to the IMF. The recovery of the country’s electronics sector. And exclusive data on data protection-related quarrels.
IMF: Brazil faces “exceptionally high” risks, but not all is bad
In a statement following an official visit to Brazil, the International Monetary Fund said the country faces “exceptionally high and multifaceted” risk as it continues to struggle against the Covid-19 pandemic and its economic fallouts.
- The IMF warns about Brazil’s high debt levels, which are “projected to jump to around 100 percent of GDP in 2020 and remain high over the medium-term.” Back in May, we at The Brazilian Report had warned that high indebtment would prevent Brazil from having a rapid, V-shaped recovery.
- The commitment to fiscal responsibility and reforms that provide medium-term stability will be key to earning markets’ trust, says the IMF. In an attempt to create a welfare program that prevents a major social crisis in 2021 — when the coronavirus emergency salary is set to end — the administration has flirted with the idea of creating exceptions to the federal spending cap, which has scared off investors.
- Some of the risks, however, are outside of the...