TEMPO.CO, Jakarta - The International Monetary Fund (IMF) stated on Thursday, September 29, 2016, that the economic recession in Brazil will soon come to an end. Growth is expected to resume next year despite albeit in a low rate of 0.5 percent.
"Growth will resume gradually in 2017. There are tentative signs that the [Brazil's] recession is close to an end," the IMF stated.
The institution explained that the prediction was made based on the assumption of fiscal expenditure restriction reform and limited approval of social security within a reasonable period. The IMF added that he Brazillian government will be able to achieve the suggested fiscal target for 2016 and 2017.
According to the IMF, if the Brazillian government can successfully achieve the abovementioned improvements, investment conditions will recover and growth will started to occur by the end of 2016.
However, the institution warned that growth will be slow because the rapid recovery in economic activity will be hampered by companies' excessive leverage, high unemployment rate, and weak household balance.
ANTARA
