Brazilian economy is performing poorly

The International Monetary Fund believes that public debt is high and growing and medium-term growth prospects are bleak.

These are the conclusions of the International Monetary Fund (IMF), which released, on Wednesday, the annual report with an analysis of the Brazilian economy.

IMF said that Brazil's economy is performing poorly in relation to its potential. The projection of the Gross Domestic Product (GDP) Fund is 1.8% growth for 2018 and 2.5% growth for the following year.

In the document, the international body once again underlined the importance of reforms for the continued growth of the country after the economic crisis.

"Fiscal consolidation is critical to maintaining confidence in debt sustainability," the IMF document says.

"The fiscal deficit has declined, but public debt is growing and deeper reforms are behind schedule," the report further states.

According to the IMF's executive board assessment, with the high level of public debt, a "steady fiscal consolidation is of enormous importance".

Another point addressed was the delay in the reform of Social Security, which was suspended in the Brazilian National Congress, in February. IMF considers this reform "imperative to ensure the sustainability of the system and to improve equity".

The simplification of the tax system is another point the Fund says it's important for the growth of the country.

In addition to this delay in reforms, which the IMF considers fundamental for the country's economic growth, there is also a risk of changes in the world's financial conditions that may affect Brazil.