MOSCOW (Sputnik) — The economic conditions in Brazil have stabilized but will remain weak until 2017 due to economic decline and political uncertainty, Moody's Investors Service said in a statement Monday.
"Despite the recent improvement in market sentiment… Brazil is still grappling with a range of problems. Slowing investment, rising household debt, accelerating inflation and high unemployment are all weighing on the economy… The ongoing political turmoil complicates the government's fiscal repairs and delays structural reforms to support growth and curb the government's debt burden," the statement read.
Moody's added that the country's economy is unlikely to get relief as commodity prices will probably stay weak.
The Brazilian economy has continued down the path of recession for the fifth consecutive quarter as oil prices stay low. Brazil has also been hurt by a continuing corruption scandal involving the nation's energy giant Petrobras and its former boss Dilma Rousseff, who was suspended as president earlier this year.