THE Brazilian economy will likely have a mild recovery next year as electoral uncertainty fades, but still lag regional peer Mexico that should grow faster after a series of economic reforms, the International Monetary Fund (IMF) said Tuesday.

    The global lender cut its growth forecast for Latin America’s largest economy by 0.6 percentage points to 1.4 percent in 2015 due to dwindling investment and moderation in employment and credit growth. The IMF also revised down Brazil’s growth for this year to just 0.3 percent from its July estimate of 1.3 percent.

    Four years of lackluster growth in a once-booming Brazil have brought the economy to the center of a political debate between Dilma Rousseff and Aecio Neves in what is expected to be a tight second-round of presidential elections Oct. 26.

    Critics say neither candidate is proposing any of the deep reforms needed to overhaul the country’s burdensome social security system and massive red tape.

    The IMF warns that Latin American economies need to embark on reforms to improve competitiveness and eliminate supply bottlenecks to avoid years of slow growth. In the short term, the region’s economy could be further damaged. (SD-Agencies)