After spending the last seven quarters in recession, Brazil’s economic downturn appears to have bottomed out and recovery is in sight. Planned government reforms to stimulate the economy are underway. These reforms are meant to both help stabilize the national macro-economic scenario and increase the country’s attractiveness to investors. Over time, the effects of these reforms will support a gradual recovery and create a better position for the country during any future economic challenges.
There is abundant anecdotal evidence coming out of Brazil’s business community suggesting that the private sector is preparing for growth and a stronger economy next year.
Key reforms in government spending caps, oil industry regulations and concessions will lay a stronger foundation for the economy but will require some time before the effects are felt.
The observed recovery in Brazil will appear less dynamic than previous recoveries due to the effects of an adverse