World Bank forecasts 0.3% rise in Brazil economy this year

The World Bank reduced the forecast for Brazil's economy this year. The update of the Global Economic Prospects, released Sunday (Jun 4) estimates a growth of 0.3% in the country's GDP. The projection is 0.2 percentage points below both the forecast made in January and the value estimated by the Brazilian financial market (0.5%).

Despite the lower rate, the bank notes that Brazil must “slowly” leave the recession behind this year. “Activity indicators have improved, including a resumption of industrial output growth and a pickup in export growth, as well as gains in confidence and manufacturing. However, the country continues to struggle with rising unemployment and still sizable fiscal adjustment needs,” the document reads.

In 2018, the World Bank expects Brazil's growth to reach 1.8%, the same as the estimate released in January.

Translated by Fabrício Ferreira