Brazil structural challenges unlikely to be met any time soon

Reduction of fiscal deficit (7.6% in 2022) and government debt (92%) require addressing public sector pay, tax, sub-national budgets, and privatisation

Youth unemployment (31%) requires addressing low low skills (tertiary education enrolment merely 51%), and low investment (gross capital formation averages merely 15% of GDP)

Fragmented Congress inhibits reform agenda of any President; among 25 parties, largest party in Bolsonaro coalition controlled merely 8% and 15% of lower and upper houses

Chart: Hasnain Malik Source: IMF, Tellimer Research Get the data