19/07/2016 11h28 - Updated 19/07/2016 11h28

IMF improves forecast for Brazil's GDP; retraction falls 3,8% for 3,3%

The IMF has also improved the estimate for next year, who was stable economy for growth 0,5%.
Photo: reproduction
Photo: reproduction

The International Monetary Fund (IMF) wait for a smaller decline of the Brazilian economy this year. The projected decline of Gross Domestic Product (START), sum of all goods and services produced in the country, it went from 3,8% in April, for 3,3%. The IMF has also improved the estimate for next year, who was stable economy for growth 0,5%.

"Consumer confidence and business seems to have hit the bottom in Brazil, and the contraction of GDP in the first quarter was weaker than anticipated”, the IMF says in the report Global Economic Outlook (World Econonic Outlook, in English), published today (19).

Consequently, says IMF, the recession 2016 It is now expected to be less severe, to return to growth in 2017. The IMF says, However, that political uncertainties remain and can obscure prospects.

The forecast for growth in emerging and developing economies was kept 4,1% is at 4,6%.

Brexit

On the report, IMF analyzes the output of the consequences of the United Kingdom of the European Union, after decision of the population in a referendum. For IMF, the outcome of the referendum in the UK, that struck the global financial markets, It implies the realization of a major risk for the world economy, which results in worse economic outlook for 2016 e 2017.

no document, which updates the projections made in April report, the forecast for the growth of the global economy was in 3,1% this year and 3,4% in 2017, with reduction 0,1 percentage point relative to the April estimate.

Even so, the projections presented today consider that there is a gradual reduction in uncertainty, There are agreements between the United Kingdom and the European Union to prevent an increase in trade barriers and also that there is not a major disruption in the financial markets and that the Brexit the political consequences are limited.

Source: Agency Brazil

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