Brazil is likely to face major challenges in the wake of the coronavirus pandemic. The economy was growing slowly prior to the pandemic due to structural factors. However, the growth has been weak compared to other countries having similar ratings.
The recovery will depend on structural reforms however; the government’s commitment to the reforms is not clarified. The political tension in the region is on the rise due to the pandemic, these creating doubts on the capacity to resume the agenda of reforms.
Government budgetary performance is expected to suffer while recovery will be uneven and will take many years.