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The IMF forecast is lower than the forecast of 2.3% expansion by institution in April
Brazilian Economy: The IMF stressed that Brazil must move forward with l & # 39; adjustment.
The IMF sees the 1.8% expansion of Brazil's GDP in 2018
<img src = "https://abrilexame.files.wordpress.com/2017/10/sd_2510.jpg" clbad = "abril-image optimized lazyload" abril-data-id = "2999556" sizes = " min-width: 991px) 680px, 420px, (max-width: 360px) 360px, "srcset =" https://abrilexame.files.wordpress.com/2017/10/sd_2510.jpg? quality = 70 & strip = info & resize = 680,453 680w, https://abrilexame.files.wordpress.com/2017/10/sd_2510.jpg?quality=70&strip=all&resize=420,280 420w, https://abrilexame.files.wordpress.com/ 2017/10 / sd_2510.jpg? Quality = 70 & strip = all & resize = 360,240 360w, "alt =" Brazilian economy: the IMF stressed that Brazil must move forward with the adjustment of public accounts (Nelson_A_Ishikawa) / Thinkstock)
New York – Brazil records a "soft recovery", supported by accommodative monetary policy and fiscal measures, but the country's economy is below potential, public debt is high and is up and growth prospects at m Yen term remain "tasteless" in the absence of reforms, said the Board of Directors of the International Monetary Fund (IMF) in a statement on the conclusion of consultations under Chapter IV for Brazil. document shows a 1.8% growth projection of Brazilian gross domestic product this year, below the estimated 2.3% expansion expected by the
"Growth is expected to reach 1.8% and 2.5% in 2018 and 2019, respectively, thanks to the recovery in consumer spending and investment, "says the document released Wednesday. The GDP forecast in 2019 was also at 2.5% in April
In evaluating the Fund, in counterpoint to the tightening of global financial conditions, "the commitment to further fiscal consolidation, ambitious structural reforms and strengthening of the financial sector architecture "are needed to put Brazil" on a strong, balanced and sustainable growth path. "
The IMF also stressed that Brazil must go from the front with the adjustment of the public accounts because it that federal spending will remain constant in real terms at the level recorded in 2016, the gross public debt should continue to increase and reach a little over 90 % of GDP in 2023. "Fiscal consolidation is the key to maintaining confidence in the sustainability of debt," said the institution. The IMF also pointed out that "Brazil is also vulnerable to tightening global financial conditions and potential trade disruptions," and that such risks can be magnified if the reform agenda is not pursued .
pointed out that inflation in Brazil reached historically low levels, largely due to the weakness of the economy, falling food prices and well-entrenched expectations. "Inflation is expected to progress towards the goal of 4, 25% in 2019 with the dissipation of the food price shock and a reduction in the output gap."
The Fund also pointed out that the current account deficit reached 0.5% of GDP in 2017, with a contraction in imports motivated by, partly because of the collapse of private investment. With the recovery of the current economy, the institution believes in a deterioration of current accounts, whose deficit should be close to 2% in the medium term. On the other hand, the IMF said that Brazilian banks are resilient, despite the losses recorded during the economic recession of 2015 and 2016.
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