IMF raises projections for Brazil

The International Monetary Fund (IMF) predicts growth of 1.7% in the Brazilian economy in 2024, representing an increase of 0.2 percentage points in relation to the projection released in October 2023. For 2025, the expectation is for an expansion of 1.9% in GDP.

The agency’s optimism regarding Brazil’s economic outlook is justified by several factors:

• Heating of internal demand: Better expectations are driven by the maintenance, at high levels, of aggregate demand
• Above-expected growth of main trading partners: Brazil benefits from more robust growth in key trading partners such as China.
• Anticipation of the global tendency to cut interest rates: Alongside Chile, Brazil is at the forefront of adopting the global trend of reducing interest rates.

The IMF report also highlights the remarkable resilience of the world market in the face of significant challenges, such as the Covid-19 pandemic, the war between Russia and Ukraine and higher global inflation.

Furthermore, the projection for global growth in 2024 was revised upwards, from 2.9% to 3.1%. This scenario suggests a robust recovery in the global economy, indicating the market’s ability to overcome recent adversities.