Brazil should grow 0.9% in 2023, according to the latest International Monetary Fund (IMF) projection, released on Tuesday, 11.
In January, the estimate foreseen in the previous report was that the Brazilian Gross Domestic Product (GDP) would grow by 1.2%.
The 0.3 percentage point cut in the projection for Brazil was one of the highest among the 16 economies for which the IMF draws estimates.
Only Japan had a more significant reduction in its GDP forecast of 0.5 percentage points – previously, the IMF estimated Japanese growth at 1.8% and now projects 1.3%.
For 2024, the fund maintained its growth forecast of 1.5% for the Brazilian economy.
In 2022, when several countries were recovering from the pandemic, Brazil grew 2.9% and the world, 3.4%.
Brazilian growth was higher than China’s.
According to the report presented jointly with the World Bank on Tuesday in Washington, the global economy will grow 2.8% this year instead of the 2.9% forecast in January.
For 2024, the forecast dropped from 3.1% to 3%.
For the IMF manager, Kristalina Georgieva, the world economy is again experiencing a moment of great uncertainty due to shocks accumulated in the last three years as a result of the pandemic and the invasion of Ukraine by Russia.
Among the causes for the lower global growth, the IMF cites still high inflation due to pent-up demand, persistent disruptions in supply chains, and spikes in commodity prices such as oil.
This has caused central banks to aggressively raise interest rates to contain price hikes. Another problem is that public and private debts remain high.
With information from Revista Oeste
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