Sources: IMF & IBGE Growth has been disappointing
Public accounts tell us good stories Source: Central Bank
PAC: Acceleration Growth Program Fiscal accounts –Primary surplus reduction due to public investment increase (0.5% of GDP) –Payroll expenditure control: inflation plus 1,5% –Minimum wage increase for the next 5 years : negative impact on social security accounts –Small tax exemptions –Social security reform – Unlikely in this administration
PAC: Acceleration Growth Program Increase of regional government borrowing limits to housing, water & sewage investments Better regulatory environment –Natural gas –Regulatory agencies –Environment
Institutional Framework Congressional autonomy Judiciary independence Rule of law
Investment grade: how far is it?
For further information: Sérgio Ribeiro da Costa Werlang Tomás Málaga