Brazil

The economic recovery after the 2015-16 recession has disappointed, with real GDP growing by only 1.1 percent in 2017 and 2018. Inflation is close to target, hovering around 4 percent. Monetary policy is accommodative with policy rates at the historical low of 6.5 percent. Fiscal policy was neutral in 2018 while gross public debt reached 88 percent of GDP. Financial markets have rebounded since the 2018 election.