The Brazilian government has floated a fresh plan to boost the country’s GDP by 37 percent in the next ten years. It is reported that the plan is prepared out of three scenarios in line with economic and fiscal reforms.
The government officials told the media about the plan, “After the financial damage wrought by COVID-19, “If the necessary reforms are not implemented, the likelihood of a fiscal crisis and economic growth crisis in the coming years will increase significantly. The third and most bearish scenario of no fiscal adjustment or market-friendly reforms would crash the economy and public finances. “For obvious reasons, it serves no purpose to include forecasts in this scenario. Macroeconomic stability, continuing the long-term fiscal adjustment agenda and monetary policy balance, are necessary conditions for a return to sustained growth.”
It is reported that Brazil’s GDP per capita in USD will surpass other emerging economies such as Croatia, Argentina and Poland in the next 11 years and remain closer to high HDI ranked economies such as Hungary and Chile.
The country’s economy will face a GDP debt and deficit of around 95 percent and 12 percent due to the impacts of the Covid-19 pandemic. The country’s president Jair Bolsonaro and economy minister Paulo Guedes have signed a strategic plan where the per capita GDP of the country is expected to surge 19 percent in the next ten years with an annual growth of 2.2 percent. Global economies have faced tough economic times this year owing to the pandemic.