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Brazil Economic Snapshot

Economic Survey of Brazil - 18 December 2023

The Brazilian economy rebounded strongly after the Covid-19 pandemic. Resilient domestic demand, supported by social transfers, continues to drive growth. Inflation is decreasing, providing room for further monetary policy easing. However, public debt remains high, calling for and improved spending efficiency and the swift implementation of the recently established new fiscal framework. The planned reform of the consumption tax system will reduce compliance costs significantly. Productivity has declined over the past decade and rekindling it will require further structural reforms.

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