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Growth has been flat for more than two years now, per capita income is about 7 percent below its pre-crisis peak, unemployment is elevated at 7.8 percent, with youth unemployment alarmingly high at 21 percent, and credit to the economy remains severely constrained.

Recent data are, however, encouraging, and policies should capitalize on the nascent signs of recovery to secure strong growth and rebalance the economy.

In the last couple of years Brazil’s growth slowed down.

Although other emerging market economies experienced a similar slowdown, the growth outturns in Brazil were particularly disappointing.

Continue reading “Recovery Strengthening, but Much Work Remains” »By Martin Kaufman and Mercedes García-Escribano (Version in Español and Português) Since the early 2000s, Brazil’s economy has grown at a robust clip, with growth in 2010 reaching 7.5 percent—its strongest in a quarter of a century.

Our hearts go out to his family and to the many victims of this brutal attack.And the measures taken to stimulate the economy did not produce a sustained recovery.This is because unleashing sustained growth in Brazil requires measures geared not at stimulating domestic demand but at changing the composition of demand towards investment and at increasing productivity.But unlike many of these resolutions, the ones made by most advanced economies to reduce their 2012 fiscal deficits were by and large kept. And the recovery continues to be slow, indeed much too slow.Compared to where we were at the same time last year, acute risks have decreased. Overall, these developments lead us to forecast 3.5 percent world growth for 2013.

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