Brazil’s economy will do slightly better in 2019 than previously expected, the International Monetary Fund said Tuesday, but the fund highlighted the need for sweeping economic reforms. The fund projected growth this year of 0.9%, up from its previous forecast of 0.8%. The fund said Brazil’s economy will gather momentum in 2020, growing 2%. The improvement comes as the Central Bank ratchets down domestic interest rates and the economy adds jobs. Brazil will do better than Latin America as a whole, the IMF said. Latin America is expected to show an economic decline of 0.2% in 2019 and then post growth of 1.8% next year. The forecasts came in the fund’s quarterly report on the World Economic Outlook, released Tuesday. The fund said Brazil’s economic potential continues to be stunted by delays in adoption of reforms, including a pension reform now before Congress. The fund said Brazil needs tax reform, trade liberalization and massive infrastructure investments to realize its full potential.
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