The International Monetary Fund (IMF) on Monday lifted Brazil’s growth outlook this year, seeing the continuation of the recovery following the recession that hit the country, but at the same time reduced the outlook for the year next.
In its review of its “Global Economic Outlook” report, the IMF saw a 2.5 percent expansion of the Brazilian economy this year, 0.1 percentage point more than in October.
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The improvement in expectations for Brazil helped partially offset the downward revision of Mexico and a more severe contraction than previously expected in Venezuela from the outlook for Latin America.
The estimate for the region was reduced by 0.2 percentage point for both years, but the projection is that Latin America will gain momentum in the period, from a growth of 1.1 percent in 2018 to 2.0 percent this year and 2.5 percent in 2020
“The reductions are only partially offset by an upward revision in the 2019 estimate for Brazil, where the gradual recovery from the 2015-16 recession should continue,” the IMF said in the report.
By 2020, however, the projection for Brazil was reduced by 0.1 point to 2.2 percent.
The IMF’s estimate for this year is in line with that expected by economists surveyed in the Focus survey conducted weekly by the Central Bank, which sees an expansion of 2.53 percent this year. But by 2020 the BC survey shows a better expectation of 2.60 percent.