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Consumption in Brazil: Where to Next?

Author

Listed:
  • Mr. Troy D Matheson
  • Carlos Góes

Abstract

Private consumption has been a key driver of growth in Brazil for more than a decade. Over this time, Brazilian consumers have benefited from a favorable policy environment, a rapid phase of development—dramatically increasing economic, financial and social inclusion— and a supportive external environment. Meanwhile, infrastructure gaps have widened and investment and productivity levels have fallen behind. The consumption-led growth model now appears to have run its course. The prospect of a period of macroeconomic adjustment presents an opportunity to adjust policy settings to ensure stronger, more balanced and sustainable growth over the medium term.

Suggested Citation

  • Mr. Troy D Matheson & Carlos Góes, 2017. "Consumption in Brazil: Where to Next?," IMF Working Papers 2017/075, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2017/075
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