Federative Republic of Brazil

Track record of policy continuity through political transitions under an inflation-targeting and floating-exchange-rate regime. Net external debt less than 10% of current account receipts. A profile of government debt increasingly in line with those of other low-investment-grade sovereigns. Large net general government debt and interest burdens. Budgetary inflexibility amid high current spending. Structural impediments keep investment and growth below that of other emerging market economies. Generally pragmatic and predicable policy coupled with fairly transparent institutions have underpinned Brazil's macroeconomic stability. This has facilitated a sounder foundation for economic growth and fiscal improvement over the past five years that should continue over the next several years. The maintenance of a consistent macroeconomic approach (anchored by a floating-exchange-rate regime and inflation-targeting framework)

Full Report