In brief

The president, Rodrigo Chaves of the centre-right Partido Progreso Social Democrático (PPSD), is running a broadly market-friendly and orthodox economic agenda. However, Mr Chaves's desire to shrink the size of the state will attract opposition from left-wing parties and unions, and combating a surge in violent crime will prove difficult. In general, policymaking will be tricky, owing to the administration's lack of a legislative majority. Falling interest rates will make economic conditions easier in 2024. The country's solid business environment and emerging tourism sector offer good prospects for consistent economic expansion in the coming years.