April 2000
Brazil - First steps in a long trek
Brazil’s economy is in surprisingly good shape following last year’s devaluation. Now the challenge is to make further progress in reducing the fiscal deficit, to overhaul the tax system and make reforms in pensions, health and education. It’s a tall order and Brazil is not noted for making
swift progress but the direction is broadly correct.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rio de Janeiro: the annual battle over the minimum
wage is a crucial concern of Brazil's poor |
This time a year ago, Brazil was teetering on the brink of disaster. The government's nightmare, a forced devaluation of the real, had come true. All the work of the previous four years seemed about to unravel, and the country faced rising inflation, unemployment and recession. Many analysts expected, at best, that the economy would shrink by 5%.
None of this happened - the economy actually grew in 1999, by 0.8%. inflation stayed low, at about 8%, and industrial production, although it slipped last year by 0.7%, is set to grow by 5% in 2000.
What went right? Pedro Malan, Finance minister, says it was a combination of factors (see interview) that, taken together, amount to Brazil's economy being more stable than most had thought. But if the worst is...
You must be a subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
- 12 months access in print and online - on euromoney.com, read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 1996
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe