Over the past five years, Brazil’s economic freedom has advanced by less than 0.5 point. Improvements in financial freedom and freedom from corruption have been largely offset by deteriorations in the area of regulatory efficiency, including business freedom and labor freedom.The negative economic impact of stagnant economic freedom has largely been masked by strong growth driven by high commodity prices over the past decade, but a deteriorating international environment and diminished growth expectations have brought these structural issues to the forefront. More broad-based and consistent reforms will be needed to guarantee long-term economic development.
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