A recent study by Tendências Consultoria points out that, over ten years, reform could add between 4% and 8% to aggregate GDP growth. A basic scenario (with more challenging macroeconomic normalization) and an optimistic one (government recovers political capital and deepens reforms) are taken into account. In a pessimistic scenario (with a crisis of internal governability and international turbulence), the reform would have zero effects on GDP.
In an interview with Estadão, Angelo Ambrizzi, head of our Tax area, points out that economic growth “will be a collateral advantage” of the reform, as it will reduce bureaucracy, bring more legal certainty, less judicialization and fewer Internal Revenue Service assessments.
“As the system will be easier and more secure, the scenario will be favorable for foreign capital and new investors should put money into Brazil in the long term” – a scenario that pushes the economy upwards.
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