Political uncertainties and the strike reduce Brazil's projection of growth in 2018 to 1.8%, according to the IMF

Political uncertainties and the protracted effects of the truckers' strike led the International Monetary Fund (IMF) to reduce Brazil's projected growth in 2018, leaving the outlook for the country well below emerging market expectations.

The IMF reduced its estimate of Brazil's gross domestic product (GDP) growth by 0.5 percentage point in 2018 to 1.8%, according to the update of its published report "World Economic Outlook" this Monday. "While rising commodity prices continue to support commodity exporters in the region, the unfavorable scenario versus April reflects the fact that the IMF has maintained its forecast of 2.5 % in April.

The IMF said, quoting Brazil's strike and political uncertainty specifically.

The downward revision of the IMF follows cuts made by the government itself, the bank central and economists in general, but still is better than the landscape seen in the country.

Specialists expect GDP expansion in 2018

The Ministry of Finance announced a growth of 3% this year, but it now estimates the 1.6% expansion, same scenario in British Columbia, of 1.5 percent, a projection that has been steadily reduced despite the uncertainties that haunt the country a few months before the presidential elections of the oc

The impact of stopping trucks at the end of May was clear of the economic activity of the Central Bank (IBC-Br), a kind of "stump". GDP indicator, which in May recorded the worst monthly reading of the historical series began in 2003, when it recorded 3.34 percent.

compared to expectations for emerging and developing economies as a whole. The IMF expects 4.9% growth this year for the group and 5.1% growth in 2019, unchanged from the April report.

For Latin America and the Caribbean, however, the accounts were reduced to growth of 1.6% this year and 2.6% in the next, respectively of 2 and 2.8%.

"Growth becomes more unequal between emerging and developing economies, reflecting the combined influences High oil prices, higher yields in the United States, the sentiment changes after the intensification of trade tensions and the internal political uncertainties, "said the IMF.

The IMF emphasized that many of these countries need to improve their resilience. a combination of fiscal, monetary and exchange rate policies to reduce vulnerability to tighter global financial conditions and strong exchange rate movements, as well as reversals of foreign exchange flows.