The International Monetary Fund, in its latest global economic outlook, released Tuesday, boosted its projection for economic growth in Brazil, citing rising investment and consumer spending. The IMF now forecasts GDP expansion of 2.3% this year and 2.5% in 2019. In its previous forecast, in January, the IMF was eyeing growth of 1.9% and 2.1% for 2018 and 2019, respectively. The IMF said Brazil’s economic recovery was swifter than expected, partly because of unexpectedly low inflation and partly because of an uptake in private investment. Brazilian inflation is currently running at less than 3.0%. Low inflation has allowed the Brazilian Central Bank to slash interest rates, setting the stage for more consumer buying and more investment by businesses, the IMF said. The government’s program of concessions and privatizations is also attracting private investment.
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