Brazil can no longer rely on consumption for growth – paper

Paper suggests it is time for Brazil to revise growth model

A working paper published by the International Monetary Fund suggests the time has come for Brazil to switch from a consumption-led model of growth to an investment-led model.

“Brazil’s heavy reliance on consumption as a source of growth over the past decade or so has contributed to a widening of infrastructure gaps that are hampering productivity and competiveness,” authors Troy Matheson and Carlos Góes say.

In the past, Brazilian consumers have benefited from private consumption, which

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