Brazil's Economic Slowdown: Is it Interest Rates or Deeper Issues?

Brazil's Economic Stagnation: A Lack of Structural Reform, Expert Claims SÃO PAULO, BRAZIL – May 15, 2025 – Brazil's economic growth continues to lag behind global peers, according to Roberto Dumas, an economics professor at Insper. In a recent interview on Jovem Pan's Visão Crítica, Dumas attributed this stagnation primarily to a lack of crucial structural reforms within the national economy. He dismissed high interest rates as the primary culprit. "The biggest problem in Brazil isn't the interest rate," Dumas stated. He argued that deeper issues, such as inadequate investment in education and infrastructure, are hindering Brazil's progress. Dumas's analysis provides a counterpoint to common narratives focusing solely on interest rate policies. The interview highlights the need for comprehensive reforms to address Brazil's long-term economic challenges. Dumas' expertise lends credibility to his assessment, suggesting that a more holistic approach is necessary to unlock Brazil's economic potential.