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RIO DE JANEIRO, Oct. 31 (Xinhua) -- Brazil will not be able to overcome its economic crisis in 2017, showed a study published on Monday by the Getulio Vargas Foundation (FGV), a renowned public policy think tank.
The FGV study of 2017 Perspectives believes the South American country will see a 3.4-percent contraction in gross domestic product (GDP) this year, and will start the year of 2017 with a 0.5-percent fall.
"I find it hard to imagine such a quick recovery from the recession is possible," said economist Silvia Matos, who presented the study.
According to her, Brazil is much more likely to have a "long, deep recession similar to the 1980s."
Matos said the Central Bank of Brazil is cautious because it remains to be seen how much deflation the country will have at this moment of economic transition.
The economist said fiscal policies are a major source of concern, and stressed the importance of reforms. She also signaled to investors that related rules are stable, and that the next federal government due to take office in 2019 will maintain the same economic model.
Matos also thought Brazil needs not only higher industrial growth in the future, but also a stronger tertiary sector.
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