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News & Events
News
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26-Oct-2011
Driven by both structural factors and international financial conditions, the Brazilian real has steadily appreciated since 2003, except during the 2008 financial crisis and more recently when a flight from risk in the midst of financial-market turbulence weakened it. Inflation pressures have emerged.
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26-Oct-2011
Brazil should rely more prominently on fiscal consolidation. The spending cuts announced earlier this year and the setting of primary surplus targets for the next three years in levels consistent with public debt reduction are welcome and the government should continue in this direction.
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26-Oct-2011
Parametric reforms to the pension system could restore its sustainability. Reduced expected pension benefits could also encourage people to save more during their working lives.
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26-Oct-2011
Approval of the federal government’s proposals to simplify the tax system would also strengthen investment incentives.
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26-Oct-2011
The Brazilian government should follow through with a proposed reform package to unify states’ rate of VAT. Further improvements could be achieved by combining existing VATs with municipal taxes on selected services, the tax on industrial products and various federal contributions into a single value added tax
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26-Oct-2011
Education will help to build on recent successes in poverty reduction. Access to education has improved markedly in recent decades, and, as a result the traditionally very high wage premiums for education have come down. Future challenges in the area of education include the need to improve the quality of instruction and to reduce the high drop out rates in secondary education.
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26-Oct-2011
In Brazil, barriers to international trade are mainly related to comparatively high levels of tariff protection. In addition, high costs and time requirements for container handling and customs clearing also act as obstacles to foreign imports. A new industrial policy plan launched in August 2011 (called Plano Brasil Maior, “Greater Brazil Plan”) contains a range of measures aimed at protecting the domestic market.
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26-Oct-2011
Even though there has been some improvement of late, environmental licensing remains a significant source of investment delays, especially in the energy sector, because of the frequency of disputes around infrastructure projects.
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26-Oct-2011
For Brazil, returns to investment in infrastructure are likely to be substantial, especially if designed with environmental benefits in mind. The government is implementing a second large infrastructure programme, which has been rightly protected from fiscal cutbacks.
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26-Oct-2011
Brazil’s economic and social progress has been remarkable. A key macroeconomic challenge will be to damp inflation in a context of abundant global liquidity, and removing obstacles to investment will be crucial to sustaining strong economic growth. Faster infrastructure development would help to achieve better economic and social performance.
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