Brasília – Brazil requires structural reforms, investment in education and improvements in its business environment before it starts growing again, the International Monetary Fund (IMF) has advised this Thursday (8th). The suggestions were made in the Responding to New Realities report, released by the fund’s managing director Christine Lagarde during the opening of the IMF meeting in Lima, Peru.
The IMF recommends labor market reforms to increase productivity in the country. “In emerging market and developing countries, addressing energy infrastructure bottlenecks (India, Indonesia, South Africa, Tanzania), improving business conditions (Brazil, Russia, Senegal, Middle East and Central Asia), and education, labor, and product market reforms (Brazil, China, India, South Africa) can lift productivity and pave the way to higher income levels,” the report notes.
The document goes on to say that despite the recovery seen in some advanced economies, the global economy is struggling due to the prospect of a United States interest rate increase and the slowdown of China’s economy, which has affected primarily commodity exporting countries, Brazil included.
*Translated by Gabriel Pomerancblum
