Analysts unimpressed with package aimed at boosting economy

Analysts consider the economic measures announced by Brazil's government on Thursday mostly positive, but they do not expect them to do much to stimulate economic activity or pull the country out of its recession any faster.

"It's more of a public relations effort than anything else. This isn't what's going to make a difference," Alexandre Schwartzman, an economist and former central bank director, told local daily G1. "It's a bit to show a service [is being provided] and that [the government] has an agenda that is not limited to the fiscal issue."

The measures fall under 10 categories, including tax regularization; real estate credit incentives; spread reduction; credit cards; reduction of bureaucracy; management improvement; competitiveness and foreign trade; facilitating access to credit for micro, small and mid-sized companies; gradual extinction of the 10% fine on the FGTS; and productive microcredit.

Despite the fact that they were announced in package form, most will not take immediate effect and are therefore only considered an expression of intent. A good number of the measures will be implemented in 2017 and others will come to fruition as provisional measures, which will be sent by to congress by the government. The delivery schedule has not yet been released.

"Overall, the measures are going in the right direction, but this is not a package that will push growth," Zeina Latif, chief economist at XP Investimentos, told local daily Estadão.

According to Latif, at most, the measures will help stabilize the economy.

Fabio Silveira, managing partner at consultancy Macro Sector, also expects the effects of the measures to be limited.

"It all helps, but the effect will be small," he told G1. "They are secondary measures to improve the liquidity of companies."