Brasília – Brazilian economy should grow by 1.9% this year. This is the projection for Brazil’s Gross Domestic Product (GDP) published this Wednesday (6) by the Organization for Economic Co-operation and Development (OECD). The estimate is lower than the one the organization published in November of last year, which was 2.1%. For 2020, OECD kept the expansion projection at 2.4%.
Despite the lowered estimate, according to the entity, a moderate economic recovery is on course in Brazil. “More confidence from the companies, less political uncertainty, lower inflation and an improved labor market will serve as basis for its domestic demand,” says the report. For OECD, the successful implementation of the reforms planned by the new government, particularly the social security one, remains key for a stronger growth resumption.
Brazilian GDP ended 2018 with a 1.1% accumulated growth compared to the previous year. GDP also ended 2017 with a 1.1% increase, but the two previous years posted decreases: 3.3% on 2016 and 3.5% on 2015. OECD projection is below expectations for the Brazilian market. According to the last Focus Readout by the Central Bank of Brazil, GDP growth estimate is 2.48% for this year and 2.65% for 2020.
Translated by Guilherme Miranda
