The country, which is emerging from a long recession, is headed into a period of solid growth as recent structural reforms start to bear fruit, the organisation said in the latest OECD Economic Survey of Brazil.

But additional reforms and efforts to reign in public spending, increase trade and investment is needed to boost the economy.

The report said that reforms to strengthen institutions, improve business regulation and reap the benefits of tighter integration into the global economy could lift gross domestic product by at least 20% over 15 years. This would boost both household incomes and compensate for the economic drag of a rapidly aging population.

OECD secretary-general Angel Gurria said: “Brazil is back on a positive growth path, but there is no time for complacency.

“With the demographic dividend now over, getting the economy fully back up to speed will require greater investment, higher productivity and closer integration into the global economy.

“For this, Brazil needs to continue on the path of active structural reform to ensure the sustainability of its fiscal accounts and the inclusiveness of its growth.”

The survey warned that without reforms, the country’s public finances could struggle.

It said that Brazil’s fiscal accounts could risk becoming unsustainable and in order to promote growth that is more inclusive, a comprehensive pension reform has to be the top short-term priority.