Since the mid-1990s, Brazil has enjoyed improved economic and financial stability largely owing to a strengthening of its macroeconomic framework. Social progress has also been impressive, with a marked fall in poverty and inequality. Increasing attention has been devoted to environmental sustainability. In order to quickly catch up with the group of high-income countries the overriding need is to achieve strong and sustainable growth. This will require continued good macroeconomic, social and environmental policies and structural reforms designed to boost savings and investment and foster infrastructure development. Higher international uncertainties and cross-country interdependence, rapid population ageing and a greater reliance on oil revenues will call for policymakers to expand their tool kit to respond to this challenge.