OECD cuts predicted growth in Brazil economy to 1.2%
The Organisation for Economic Co-operation and Development (OECD) lowered its projections for Brazil’s economic growth in a report released today (Sep. 10). The agency now believes the country is likely to grow 1.2 percent in 2018—down 0.8 percentage points from May’s two percent forecast.
For 2018, the estimated increase went from 2.8 to 2.5 percent of the country’s gross domestic product (GDP).
In the report, OECD says the growth in emerging economies is losing steam. “The growth in the GDP was maintained in China and India in the first six months of 2018, but slowed down in several other economies, including Brazil.”
The OECD predicts that the global economy should expand 3.7 percent both this year and in 2018, with increasing gaps among countries, in contrast with the significant growth observed late in 2017 and early in 2018. Regarding the forecast released in May, a 0.1 percentage point reduction was reported for 2018, and 0.2 for 2019.
In the view of the international body, the outlook for economic growth is considerably weaker than what had been estimated in May. “The rise in commercial tensions, the aggravation of financial conditions in emerging markets, and political risks may further undermine the strong and sustainable growth in the long term around the world,” the OECD reported.
In their opinion, confidence was undermined, trade and investment growth are more sluggish than estimated, and pay raises remained modest in most countries.
