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Brazil has made significant progress in facing problems that are a legacy of the past. Macroeconomic stabilization has been reinforced since the devaluation of the Real in 1999 and, for the first time in a decade, the economy was able to benefit from an export-led recovery. In 2000, this recovery became more broad-based, which has induced a significant increase in tax revenues and softened the impact of fiscal adjustment. Nonetheless, the dependence on foreign sources of finance, and thus the vulnerability to external shocks, remains significant. Brazil now faces the challenge of pressing ahead with the reforms that are needed to sustain growth. This encompasses a number of areas, in which the government is working. Reform of the fiscal federal relations is needed, and the pension system remains fiscally unsustainable in the absence of a reduction in benefits and privileges for civil servants.
According to the author, Brazil
Economic Survey of Brazil
Brazil has made significant progress in facing problems that are a legacy of the past. Macroeconomic stabilization has been reinforced since the devaluation of the Real in 1999 and, for the first time in a decade, the economy was able to benefit from an export-led recovery. In 2000, this recovery became more broad-based, which has induced a significant increase in tax revenues and softened the impact of fiscal adjustment. Nonetheless, the dependence on foreign sources of finance, and thus the vulnerability to external shocks, remains significant. Brazil now faces the challenge of pressing ahead with the reforms that are needed to sustain growth. This encompasses a number of areas, in which the government is working. Reform of the fiscal federal relations is needed, and the pension system remains fiscally unsustainable in the absence of a reduction in benefits and privileges for civil servants.
According to the author, Brazil
