IMF raises GDP growth projection for Brazil to 1.7% in 2022

The International Monetary Fund IMF significantly raised its estimate for Brazilian economic growth this year despite the difficulties faced by global economies. Still, it started to see the weaker performance in 2023.

In the revision of global estimates in its Global Economic Prospect report, the IMF now sees Brazil’s Gross Domestic Product growth this year at 1.7%, well above the 0.8% rate calculated in April.

IMF NOTORIOUS FOR INACCURATE FORECASTS

The IMF is notorious in Brazil for its wrong forecasts.

The agency predicted that Brazil’s gross domestic product (GDP) would fall by almost 10% in 2020, which official figures show did not happen at all, with a decline of just 3.9%.

That is why in December 2021, Brazilian Economy Minister Paulo Guedes laughed off the IMF for its inaccurate forecasts of the country’s growth and urged it to make its predictions “elsewhere.”

“I would like to say, very delicately, that we are even dispensing with the IMF mission,” said Guedes, an orthodox Chicago School liberal.

A day after being criticized by Economy Minister Paulo Guedes for their wrong predictions, the IMF confirmed in a statement that it would close its office in Brazil. The Brasilia unit acts as an “embassy” for the institution.

BRAZILIAN GOVERNMENT FORECASTS A GROWTH OF 2%

Brazil’s Economy Ministry sources said in mid-July the portfolio would raise its growth forecast this year to 2% from 1.5%, a change backed by stronger-than-expected recent economic indicators.

In May, the ministry maintained its GDP expectation at 1.5%. However, in late June, Economy Minister Paulo Guedes had already said the economy would expand by around 2% this year, with the structural effect of the government’s economic reforms offsetting the impact of high-interest rates.

The IMF is rejected practically throughout Latin America as a stooge of international high finance.

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