Economic reforms, crisis in Argentina, adverse external situation and weak domestic market to be debated in Rio
According to a forecast by Fundação Getulio Vargas’ Brazilian Institute of Economics (FGV IBRE), Brazil’s gross domestic product will grow 1.1% this year, the same figure recorded in 2017 and 2018. This is insufficient to significantly boost the level of formal employment, investment and confidence in the domestic market. Current political and economic circumstances will be discussed on September 16, from 4 pm to 6 pm, at the Third Economic Analysis Seminar of 2019, at the FGV Cultural Center (Praia de Botafogo, 186, Botafogo, Rio de Janeiro). FGV IBRE economists and Insper political scientist Carlos Melo will participate in the event.
“The main highlight is still Brazil’s slow economic recovery and new risks on the horizon, as external circumstances change. The public pension reform (currently before the Senate) is necessary but not sufficient to control public spending. In other words, we are only part of the way through the fiscal consolidation agenda. We must continue to move forward with fiscal reforms and spending control,” says Silvia Matos, the coordinator of IBRE’s Macro Bulletin.
According to her, the situation calls for caution, given the crisis in Argentina and the trade war between China and the United States, which is slowing down the world economy. Matos believes the Brazilian government ought to tackle more challenges and it needs to effectively negotiate and communicate its proposals in order to enact reforms, allowing the country to resume decent growth.
“Because of the weakness of economic activity, macroeconomic and microeconomic reforms are urgently needed to lift the country out of its lethargy, thereby increasing formal employment, workers’ average income and the economy’s productivity, which has grown at a feeble rate in recent years,” says Matos.
FGV IBRE professors Armando Castelar, Silvia Matos, Samuel Pessôa and José Júlio Senna will take part in the debate, as well as Insper political scientist Carlos Melo.
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