Brazil has become one of the world's leading economic powers and has lifted millions of people out of poverty. Macroeconomic stability has been a crucial factor behind this success, but fiscal performance has deteriorated recently and inflation has risen markedly. Economic growth will need to come increasingly from productivity, as demographic changes will make raising labour participation increasingly more difficult. The industrial sector, where a few key structural reforms could unleash significant unexploited potential, can play a leading role in this respect. Currently, a fragmented indirect tax system, insufficient infrastructure, weak competitive pressures and low integration into international trade are holding back Brazil's industry, which has not benefited enough from the global trends that have shaped industrial production elsewhere. Significant progress has been made in raising health, due in large part to universal public healthcare. However, inequalities in access persist as waiting times for specialised medical services are long and regional disparities in the public system are significant.