(MENAFN – The Rio Times) Brazil’s economy is expected to grow more than previously thought this year. The International Monetary Fund (IMF) has raised its forecast for Brazil’s GDP growth to 3% for 2024, up from 2.1% in July.
This positive outlook is due to strong consumer spending, increased investment, and government support, despite concerns about a possible slowdown in 2025, where the growth forecast was adjusted from 2.4% to 2.2%. The IMF noted that Brazil’s economy performed better than expected in the first half of 2024.
An improving job market, stable inflation, and rising incomes have contributed to this trend. Additionally, the impact of floods in Rio Grande do Sul was less severe than feared.
The Brazilian government is even more optimistic, projecting 3.2% growth for 2024, with Finance Minister Fernando Haddad hinting at possible revisions to this estimate. The IMF anticipates inflation rates of 4.3% in 2024 and 3.6% in 2025, indicating a gradual stabilization of prices.
On a regional scale, the IMF has increased the economic growth forecast for Latin America to 2.1%, largely due to Brazil’s performance. Globally, the U.S. is expected to grow by 2.8%, while China’s forecast has slightly decreased to 4.8%. Germany is projected to see no growth this year. Meanwhile, India is expected to grow by 7.0% in 2024 and 6.5% in 2025, reinforcing its role in global economic growth.
As the world faces economic uncertainties, Brazil’s improved outlook provides hope and highlights its growing importance in the international economy.
