São Paulo – The Organization for Economic Co-operation and Development (OECD) has revised its global economic growth forecasts for 2015 and 2016 and signaled in a report this Wednesday (16th) that recession in Brazil will be worse than predicted in its previous report, issued in June. The new projections are for a 2.8% contraction of Gross Domestic Product (GDP) in 2015 and 0.7% contraction in 2016. Three months ago, shrinkage was expected to be 0.8% this year and 1.1% in the next one. <\/p>\n
The OECD report claims economic recovery has progressed well in some advanced countries, but deterioration and stagnation in global trade are weakening the growth of emerging countries. <\/p>\n
The organization says the United States are growing again, and so is the European Union, although European countries are recovering slower than previously imagined. Japan is also on an improving path according to the OECD, which comprises the world’s 34 leading economies. <\/p>\n
The organization asserts, however, that China is a puzzle, in that it has been growing less than expected and stock markets have experienced turmoil. It also claims nations that engage in significant trade with China and are heavily reliant on commodities could be more strongly mpacted. <\/p>\n
“Some large emerging markets have also experienced headwinds from specific domestic and international events. Brazil and Russia are experiencing deep recessions combined with relatively high inflation,” the report reads. The OECD said these two countries should see some improvement if commodity prices do not fall further. <\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n