São Paulo – The International Monetary Fund (IMF) estimates that Brazil’s Gross Domestic Product (GDP) will grow by 0.2% this year and by 1.7% in 2018. Growth in 2017 will be driven by the soy crop, by growing consumption, by the unlocking of inactive bank accounts from the severance indemnity fund (Fundo de Garantia do Tempo de Serviço – FGTS), by a gradual pickup in investment, and by the iron ore price hike, according to an IMF report issued this Friday (19).
The expected growth rates are weaker than those of Latin America and the Caribbean, which are seen growing by 1.1% in 2017 and 2% in 2018. The report factors in a modest drop in commodity prices and growing global political uncertainty. The IMF economists believe Latin America is experiencing a slow economic recovery process in the wake of a recession.
*Translated by Gabriel Pomerancblum
