World Bank Caps Brazil's GDP Growth Forecast at 0.3%

06/05/2017 - 11h59

The Brazilian economy will see 0.3 % growth this year, according to a World Bank forecast. The estimate is 0.2% lower than the prediction the organization made back in January.

The World Banks' projections are more pessimistic than the Banco Central average obtained through weekly consultations with economists. The most recent edition, by Focus, from May 26th, signaled a 49% growth in this year's GDP.

The multilateral entity sees improvements in the Brazilian economy (such as growth in industry and exports, the main factor behind the 1% growth in GDP during the first trimester) but points at the rise in the unemployment rate and the need for "significant" tax adjustments.

In the medium term, the World Bank believes that the Brazilian economic climate is being repressed by the debt of the private and public sectors, which should be reduced, especially after the rapid increase in debt that occurred before the recession of 2015-2016.

According to the Washington based entity, the country's GDP will see a growth of 1.8% and 2.1% next year and the year after next, respectively.

In both cases, the projections are less optimistic than the average for emerging nations: 2.1% in 2017 and 2.5% in 2018.

Translated by SUGHEY RAMIREZ

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