Amid this swirl of doubt, one thing is clear: Brazil must quickly cut its deficit or it risks heading back into crisis. A World Bank analysis concluded last year that Brazil spends more than it can afford and spends poorly. Compounding the challenge, Brazil is only just beginning to emerge from a two-year-long recession, and growth remains stagnant. Guedes, who will lead the Economy Ministry, appeared to be sending just that signal hours after Bolsonaro’s victory on Oct. 28. Beyond pension reform, Bolsonaro has promised to reduce the size of the state, including halving the number of ministries, and selling off state companies.

Source: Washington Post November 06, 2018 16:06 UTC