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GDP growth will be 0.7% in 2017, says Ipea


In the evaluation of the agency, the Social Security reform is essential to maintain the functioning of the Brazilian economy

With the recovery of the economic sectors, the Institute of Applied Economic Research (Ipea) expects Gross Domestic Product (GDP) growth of 0.7% this year. By 2018, the agency estimates that the economy will advance 2.6%.

Estimates are in line with the assessment of financial market experts, who expect a 0.68% growth of the economy this year and 2.30 in 2018.

In the third quarter, the Ipea study indicates a growth of 1.4% in industry, 0.5% in services and 11.1% in agriculture. In addition, the agency also bets on a high consumption of families and exports as factors that will impact GDP in a positive way this year.  

"The projections assume a scenario of relative stability of the perception of risk in relation to the Brazilian economy", affirms the study.

According to the agency, the new rate of loans from the National Bank for Economic and Social Development (BNDES), the Long Term Rate (TLP), which reduces National Treasury spending, new infrastructure sector regulation and labor modernization are measures that can increase the economic advance in the medium and long term.

Public Accounts

In the study, Ipea calls attention to the approval of the Social Security reform. If the pension system does not change, there is a risk to the functioning of the economy.

Currently, the Chamber of Deputies analyzes the pension reform proposal, which provides for the adoption of a minimum age of 65 for men and 62 years for women to access the benefit. It is considered essential to balance the country's finances.

Source: Portal Brasil, with information from Ipea