The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Brazil growth: Of lost years, lost decades

Frustration is building quickly in Brazil. What was supposed to be the beginning of a credit cycle – and a structural improvement in long-term economic growth – is becoming just another false dawn.

Brazil_lost
Ford Motor Co employees assemble with members of the metallurgic syndicate after the company announced the closure of the country's oldest plant in Sao Bernardo do Campo, Brazil March 12, 2019. REUTERS/Amanda Perobelli - RC1A4E250080
Amanda Perobelli/REUTERS

Figures from Brazil’s central bank show a deceleration in credit growth in the second quarter of 2019 (compared with the first quarter), which led an exasperated Octavio de Lazari, president of Bradesco, to say that 2019 is “already another lost year” for the economy.

In a meeting with journalists, Lazari struck a pessimistic note: “The second quarter (credit performance) is worse, reflecting the negative GDP growth in the first months of this year.”

Bradesco had already lowered its forecasts to 1.2% GDP growth for the year due to slower-than-expected economic recuperation caused by the government of new president Jair Bolsonaro and its apparent inability to govern. The lack of progress in pensions reform is the touchstone for economic and financial angst – causing a lack of investment from both international and local investors – but the inability to make necessary macro and micro reforms runs deeper.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree