Brazil’s economy will continue to pull back in 2016 and will face zero growth in 2017, the International Monetary Fund said Tuesday as part of its latest World Economic Outlook. The IMF is now forecasting a 3.5% retraction in Brazil’s economy this year, down from its October forecast of negative 1%. The IMF is projecting zero growth in 2017, down sharply from its October forecast of a 2.3% advance. According to the IMF, Brazilian gross domestic product shrank by an estimated 3.8% last year. The continued Brazilian recession comes in sharp contrast to global growth. In its newest outlook, the IMF is projecting a global economic expansion this year of 3.4%, rising to 3.6% in 2017. Brazil is being held back by a number of factors, according to the IMF, including political uncertainty, persistent corruption, high interest rates and lower international commodities prices.
Link to UOL news agency article.More Testimonials