The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Brazil's states have been facing severe fiscal pressures over the last years. As the economy went through a deep economic recession in 2014-16, Brazilian subnational governments had to adjust to much weaker revenue growth, while dealing with the consequences of past large increases in spending-especially on wages and pensions. Several states are now having to manage high debt levels, liquidity pressures, and accumulation of large payment arrears.