Brasília – The International Monetary Fund (IMF) has lowered its growth forecast for Brazil this year, pointing out the international instability and the domestic vulnerability of emerging nations. In line with the market reduction in forecasts, the IMF believes that the economy of Brazil should grow 2.5% by December – a forecast half a percentage point below the April estimate.
In an updating of its macroeconomic report, the World Economic Outlook, disclosed on Monday (16), in Washington, in the United States, the IMF observes that "growth momentum has also slowed in various emerging market economies, notably Brazil, China, and India". "This partly reflects a weaker external environment, but domestic demand has also decelerated sharply in response to capacity constraints and policy tightening over the past year."
The document adds that “in the near term, activity in many emerging market economies is expected to be supported by the policy easing that began in late 2011 or early 2012 and, in net fuel importers, by lower oil prices.”
For 2013, the IMF estimates that the growth of the Gross Domestic Product (GDP) of Brazil should reach 4.6% – half a percentage point above the forecast of three months ago. According to the fund, the greater growth next year should be boosted by works for the 2014 World Cup.
*Translated by Mark Ament
