For 2024, the Fund maintained the expectation of a 1.5% increase in the country’s GDP
WASHINGTON – O International Monetary Fund (IMF) revised downwards the projection of growth of Brazil in the first year of government of President Luiz Inacio Lula da Silva (PT). The new expectation points to an expansion of 0.9% in Gross Domestic Product (GDP) in 2023, against an increase of 1.2%, which was expected in January, according to the World Economic Outlook (WEO) report, published this Tuesday 11, as part of the spring meetings of the organization .
If confirmed, the IMF’s expectations indicate a significant slowdown compared to last year, when the Brazilian economy grew by 2.9%. For 2024, the Fund maintained its expectation of a 1.5% increase in the country’s GDP.
Revising this year’s projection downwards, the IMF expects growth in the first year of Lula’s government to be lower than the performance seen in the debut of his predecessor, Jair Bolsonaro (PL). In 2019, the Brazilian GDP grew by 1.2%.
President Lula returned to criticize the IMF on Monday 10 during a speech on the first 100 days of government. According to the PT, if his management is based on what the market and the Fund’s prospects indicate for Brazil, “it is better to give up”. “It’s important for these people to speak up, so that we do something other than what they’re saying,” Lula said.
In the torch of the emerging
Projecting a “harsh” and “hazy” scenario for the global economy this year, IMF Chief Executive Kristalina Georgieva said some impetus would come from emerging and developing economies. However, this will not be the case in Brazil.
At the pace estimated by the Fund, the first year of Lula’s government will place the country among the worst GDP performers among emerging and developing countries in 2023, ahead only of economies such as Russia, which is feeling the effects of the invasion from Ukraine, and from South Africa. The forecast for Brazil is also lower than the expected growth of developed economies and the global average.
IMF review bolsters the economic chorus regarding low growth expected for Brazil this year. Last week the World Bank released a projection of a 0.8% increase for the country, on the sidelines of the organization’s spring meetings, also held in Washington.
The warning also comes from the private sector. Itaú Unibanco, Latin America’s largest bank, announced on Monday a downward revision of its expectations for Brazil’s GDP this year, which increased to 1.1% from 1.3%.
Source: Terra
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