Monday, October 19, 2015

Brazil can avoid crisis by making needed adjustments

Brazil isn't destined to have a crisis, it's possible to avoid it.

If they make the necessary adjustments, there won't be any further downgrading and confidence in fiscal policy will improve. That will make people more comfortable about spending.

In 2016, if adjustments are made, I think there will be recession in the first six months, but the economy will bottom out midway through the year and then begin to recover. Brazil is not destined to have a crisis. There is a way out, although it is difficult and requires political courage from whoever is in power. For things to stabilize, fiscal adjustment is necessary, there's no other way,