An IMF report published in May 2019 found the recovery of the Brazillian economy remains “sluggish” after the devastating recession the country endured in 2015 and 2016. This refers to the contraction of Brazil’s GDP in the first quarter of 2019, which was preceded by two years of modest increases in 2017 and 2018 (1.1%).
Political and social upheaval still could cause shocks that would derail Brazil’s pension reform, according to the IMF mission statement. President Jair Bolsonaro, inaugurated on the 1st of January 2019, promises to continue pushing to reform the pension system, which currently accounts for around 44% of Brazil government spending. These pension reforms are crucial for the future of Brazil’s economic outlook and currently seem to be the quickest way to save money.
Brazil’s Economy by the Numbers
Brazil was once considered one of the global market’s great white hopes. Along with Russia, India, and China, it belongs to the so-called “BRICs,” a group of nations expected to experience a meteoric rise in the coming decades.