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IMF raises Brazil's GDP growth forecast to 0.8% in 2022

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In the report released today, the IMF points out that the global economic outlook, in general, has been severely hampered by the war in Ukraine.

| Photo: Marcelo Andrade/Gazeta do Povo

The International Monetary Fund (IMF) has improved Brazil’s growth outlook for this year compared to the previous forecast, presented in January. According to the report released by the institution this Tuesday (19), the estimate is that the Brazilian Gross Domestic Product (GDP) will grow 0.8% in 2022. At the beginning of the year, the expectation was for a rise of 0.3%. The country was one of the few that had the indicator revised upwards. As for 2023 the forecast is for a 1.4% growth in the Brazilian economy compared to an expectation of 1.6 % presented in the previous report.

In the report released today , the IMF points out that overall global economic prospects have been severely hampered by the war in Ukraine. The global growth projection was reduced to 3.6% in 2756 and 2023, down 0.8% and 0.2%, respectively. “The effects of the war will spread far and wide, increasing price pressures and exacerbating significant policy challenges,” the IMF said in a statement.

“This crisis is unfolding even when the global economy has not yet fully recovered from the pandemic. Even before the war, inflation in many countries was rising due to supply and demand imbalances and political support during the pandemic, leading to a tightening of monetary policy. The latest blockades in China could cause new bottlenecks in global supply chains”, points out the agency.

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