Cover IMF Staff Country Reports
Buy Book in Print
Brazil: Selected Issues
Author:
International Monetary Fund. Western Hemisphere Dept.
Search for other papers by International Monetary Fund. Western Hemisphere Dept. in
Current site
Google Scholar Close
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2017: Issue 216
Language:
English
Publication Date:
13 Jul 2017
DOI:
https://doi.org/10.5089/9781484309919.002
ISBN:
9781484309919
ISSN:
1934-7685
Pages:
111
Keywords:
ISCR; CR; Brazil; resource misallocation; inflation expectation; experience reversal; inflation response; government worker; financing investment; Income; Income inequality; Fiscal consolidation; Inflation; Income distribution; Global; Africa
Download PDF (2.6 MB) Download Epub
This Selected Issues paper examines the proximate causes of dramatic fall in investment in Brazil and the prospects for investment going forward. A variety of factors contributed to the investment decline, including deterioration in Brazil’s medium-term growth prospects, rising real interest rates, falling terms of trade, rising uncertainty related to economic policy, rising levels of corporate leverage and lower cash flow. Some of the factors that have weighed on investment over recent years have begun to normalize providing some impetus for a recovery. However, still-high levels of corporate leverage and the prospect of continued uncertainty related to economic policy settings suggest a turnaround in investment is likely to be subdued.
  • Collapse
  • Expand
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund