Brazil Economic Outlook | Fourth Quarter 2019

The global slowdown makes the domestic recovery more difficult.

Key points

• Key points:
• The 2019 growth forecast is kept at 0.9% while the 2020 forecast is revised downwards by 0.2pp to 1.6%.
• On top of a more unfavorable global environment, the lack of room for countercyclical fiscal policies weighs negatively on the economy.
• In contrast, monetary policy will support growth, even more than previously expected.
• The social security reform, which will most likely be adopted soon, will also back economic activity, mainly due to a likely boost in confidence.

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