Brasília – The International Monetary Fund (IMF) revised its estimation for the shrinkage of the Brazilian economy from 1.5% to 3%. The information is included in the report World Economic Outlook released this Tuesday (6th). For 2016, the expectation for the decline of the country’s Gross Domestic Product (GDP) went from 1.7%, registered in the report released in July, to 1%.
The Fund points out that the confidence of business and consumers continues to diminish, especially due to the deterioration of the political scenario. The report says that investments are falling quickly and that the need for a tight macroeconomic policy reduces domestic demand.
The Brazilian government expects a drop of 2.44% of the GDP this year. For the Brazilian Central Bank, the estimation is for a 2.7% decline.
The IMF’s growth estimation for the world economy is of 3.1%, or 0.2 percentage point below July’s forecast. According to the report, global growth diminished in the first half of the year, reflecting the slow pace of the emerging economies and the weak recovery of the advanced countries. For 2016, the estimation is for a global economic growth of 3.6%.
*Translated by Sérgio Kakitani
