For many analysts, medium and long-term capital must begin to reach the Brazilian economy should the approval of the Pension Reform continue and be approved by the National Congress.
If approval occurs, for analysts, Brazil should grow again in 2020. According to the head of the Economic Policy Secretariat (SPE) of the Ministry of Economy, Adolfo Sachsida, if the reforms are approved, the government will propose a productivity agenda. Sachsida believes that this could make the economy grow again at a faster pace, from 3% to 4% a year, in the long run.
Despite the government's goodwill, very weak data from industry, commerce, and services in Brazil, the main engines of economic growth in the country, point to a fall in Gross Domestic Product in the second quarter of 2019. This means that Brazil can return to a recessionary scenario later this year.
According to Valor Econômico newspaper, real economic data indicate that Brazil "has not been able to recover from the recession, it has 13.3 million unemployed, of whom one in four has been seeking jobs for more than two years. % of installed capacity is idle, 210 thousand commercial companies closed their doors in four years and 6 thousand companies demanded judicial reorganization. The negative effects of the 2014-2016 depression on the Brazilian economy were stronger and went on much longer than expected".
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