Both GDP growth and inflation in 2020 will be lower than previously expected, the Economy Ministry said Wednesday in a report. The government is now forecasting 2020 economic growth at 2.1%, not the previously posted 2.4%. Inflation will weigh in at just 3.12%, lower than the 3.62% previously forecast. The report said growth will be hurt by the global spread of the coronavirus, a sluggish international economy and declining commodities prices. The inflation rate will decline on reduced consumer demand and lower food and fuel costs. The report said Brazil’s federal government will likely suffer a reduction in tax revenues in 2020. Lower revenues will make it necessary to freeze a portion of the federal budget in order to meet 2020 fiscal targets.
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