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The labor market has been one of the most affected sectors during 2020, which despite the positive adjustment throughout the year, has not reached the levels observed before the pandemic. This recovery has been characterized by a more than proportional growth of informal employment and negative effects on women employment.
We continue to expect Brazil’s GDP to contract by 3.0% in 2016 and then grow 0.9% in 2017. While recent data show that the risks for growth in 2016 are tilted to the downside, the approval of the project to impose a cap on fiscal expenditure could trigger a faster-than-expected recovery from 2017 on.
