Due to the effects of the Covid-19 pandemic, the International Monetary Fund (IMF) projects a 5.3% drop in the Brazilian economy this year. The forecast for the fall in Gross Domestic Product (GDP), the sum of all goods and services produced in the country, was published today (14) by the IMF in the World Economic Outlook report.
In the report released in January, before the effects of the covid-19 pandemic on the Brazilian economy, the IMF forecast was that the Brazilian economy would grow 2.2% this year.
For 2021, the forecast is for recovery, with GDP growth at 2.9%. The previous estimate for next year was 2.3%.
The forecast for Latin America and the Caribbean is for the economy to fall by 5.2% this year and grow by 3.4% in 2021.
“Among emerging markets and developing economies, every country faces a health crisis, a severe external demand shock, a dramatic tightening in global financial conditions and a fall in commodity prices, which will have a strong impact on economic activity in countries. commodity exporters,” says the report.
The world economy is expected to decline by 3% in 2020 and grow by 5.8% next year. In January, the IMF predicted that the world economy would grow by 3.3% this year. The IMF highlights that “it was an extraordinary review in such a short period of time”.
Advanced economies, such as the United States, Germany and Japan, among others, are expected to see a 6.1% drop in GDP this year and grow 4.5% in 2021.
The IMF highlighted that effective policies are essential to prevent worse outcomes. “The measures needed to reduce contagion and protect lives will affect economic activity in the short term, but should also be seen as an important investment in long-term human and economic health. The immediate priority is to contain the consequences of the Covid-19 outbreak, especially by increasing health expenditure to strengthen the sector's capacity and resources, adopting measures that reduce contagion”, says the IMF.
Source: DATA
