Brasília – The World Bank has revised down the forecast for Brazilian economy growth. According to the Global Economic Prospects report, published last Tuesday (4), the forecast for the Gross Domestic Product (GDP) growth this year was revised down in 0.7 percentage point, to 1.5%.
For 2020, the estimate went up 0.1 percentage point, to 2.5%, and for 2021 it was revised down in 0.1 percentage point, to 2.3%. Last report was released in January.
“The regional recovery will be driven predominantly by private consumption as inflation remains moderate and confidence returns and, in 2020-21, by a rebound in fixed investment growth. However, growth prospects for 2019 and 2020 have been downgraded, reflecting weaker-than-expected activity in Brazil and Mexico, but also in smaller economies,” the report reads.
Growth in Latin America and the Caribbean was also revised down this year. It slid 0.4 percentage point, to 1.7%. Regional growth is expected to reach 2.5% in 2020 and 2.7% In 2021. The forecast for the next year was revised down in 0.2 percentage point and, for 2021, it remained stable compared to the last estimate made public by the World Bank in January.
Global growth forecast was revised down to 2.6%, 0.3 percentage point lower than the previous projection, reflecting weaker-than-expected trade and investment. For 2020, it was revised down in 0.1 percentage point to 2.7%. The 2021 forecast remained at 2.8%.
Translated by Guilherme Miranda