Brazil's economy is expected to recover in Q2

SAO PAULO: Brazil's economy is expected to recover in the second quarter of this year after contracting in the first, thereby avoiding technical recession, central bank chief Roberto Campos Neto said on Tuesday.

Speaking to reporters after the bank slashed its 2019, growth forecast to 0.8pc, Campos Neto said the central bank assumes pension reform is approved by Congress and this stimulates economic activity.

Failure to pass pension reform, however, would force the central bank to change its assessment of the balance of risks to growth and inflation.