Notícia

OECD says that the Brazilian economy should grow 1.9% in 2018

OECD says that the Brazilian economy should grow 1.9% in 2018

OECD says that the Brazilian economy should grow 1.9% in 2018

The Brazilian economy is expected to exit the recession this year and increase growth in 2018 and 2019, according to projections by the Organization for Economic Cooperation and Development (OECD), the estimate for the expansion of the Gross Domestic Product (GDP) this year remained in 0.7%.

For 2018, the projection rose from 1.6% to 1.9%. For the organization, in 2019 the economy will grow more, reaching 2.3%. In 2016, the Brazilian economy recorded a decrease of 3.6%.

The OECD noted that - after eight consecutive quarters of decline - growth has finally resumed. "Initially boosted by agriculture, the recovery now seems increasingly broad," says the economic outlook report.

For the OECD, growth is expected to intensify, although confidence is sensitive to political developments. The organization also points out that inflation is below target, which is centered at 4.5%. This allows for lower interest rates, which will support the recovery of investments.

"Credit to businesses continues to fall, but unemployment has begun to decline," the report says. The OECD also says that Welfare Reform is crucial to ensure compliance with the ceiling rule on public spending and to promote fiscal sustainability.

World Growth

The OECD projection for world economic growth is 3.6% this year, rising to 3.7% in 2018 and decreasing to 3.6% in 2019.

In the report, the organization stresses that the world economy has strengthened, with monetary and fiscal stimulus supporting a broad and synchronized improvement of growth rates in most countries.

There is still expectation of a slight improvement in the economy in 2018, but growth remains below the period before the global economic crisis.

Source Agência Brasil.

12/12/2017