Capital market development in Brazil is a key policy issue going forward to foster savings, investment and absorptive capacity in a context of prospects for sizable capital flows in the medium term. Brazil’s savings and investment levels as a share of GDP are still low by international standards. As such, deepening capital markets would be important for increasing incentives for savings and allocating these efficiently to investments. Deep and liquid capital markets could also help bolster resilience to capital flows by developing greater absorptive capacity. This paper reviews the state of play in Brazil and steps for further development
