INSIGHT: Large stimulus puts Brazil on slow recovery path

摘要

HOUSTON (ICIS)--Brazil's stimulus programmes spared its economy from the worst effects of the coronavirus, but the recovery will be slow and threatened by its growing deficit. The country's GDP may not return to pre-pandemic levels until 2024, according to the LatinFocus Consensus Forecast, conducted by the consultancy FocusEconomics. The recovery is slow because policy makers are exhausting their tools to boost the economy. Its growing deficit is ruling out prolonged spending stimulus. The benchmark Selic rate cannot fall much further without creating other problems in the economy.