Brazil will see resumption of growth after approval of pension reform

Source: Xinhua | 2019-05-18

Brazilian Economy Minister Paulo Guedes on Friday expressed his optimism about the resumption of economic growth, saying that "a flood of good news" will come after the social security reform is approved.
The reform to overhaul the country's costly social security system will "clear the horizon for private investments, both internal and external," Guedes told an industrial event here, insisting that the growth outlook will improve after the Congress says yes to the reform despite the poor economic performance in the South American country.
The reform aims to save government spendings by changing workers' pension contributions, raising the minimum retirement age and closing loopholes. The draft bill needs to be approved by a majority of two thirds in both the Chamber of Deputies and the Senate.
Earlier this week, the central bank's Economic Activity Index (IBC-Br), a preview of the official gross domestic product, showed that Brazil's economy shrank 0.68 percent in the first quarter of 2019.