Brazil’s Economy Faces ‘Exceptionally High’ Risks, IMF Says
- IMF praises government response, commitment to spending cap
- More fiscal response needed if economy weakens, IMF says
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The International Monetary Fund said the Brazilian economy faces “exceptionally high and multifaceted” risks as it continues to grapple with the coronavirus pandemic and its impact on the country’s debt dynamics.
“There is an unusually high degree of uncertainty over how the pandemic will evolve and the expiry of fiscal support at the end of the year will add pressure on the already-wide output gap,” IMF staff wrote in a report Monday following an official visit to Brazil.