A report released on Monday (July 17th) by the World Trade Organization (WTO) says that the Brazilian economy will have a gradual recovery in 2017, but growth will be weak for an extended period of time. The international trade entity is currently reviewing Brazil’s trade policies and practices.

Brazil, Brazil news,The World Trade Organization is reviewing Brazil's trade practices and forecasting the country's economic future this week,

“Despite Brazil’s mainly solid economic fundamentals, downside risks to the economic outlook remain,” says the report issued by the WTO adding, “The economy remains vulnerable to a re-intensification of political uncertainty, as well as to delays in addressing fiscal imbalances.”

According to the international entity ‘future prosperity and sustainable growth depend on the implementation of productivity-enhancing structural reforms in several areas’ “These reforms would increase the resilience of the Brazilian economy, thus enabling it to continue to meet its broad-based economic and welfare objectives, including inclusive growth and a narrower wealth divide,” concludes the report.

The WTO assessment says that Brazil entered a severe recession in 2015 and 2016, triggered by deteriorating trade relations and increased by political uncertainty. The decline in the country’s GDP was accompanied by rising inflation and unemployment.

Published in Economy
© 2017 Eyes on Brasil. All Rights Reserved. Designed By Lennart.