AlwaysFree: IMF Says Brazil’s Economy Will Contract 5.8% In 2020

The International Monetary Fund said the Brazilian economy would contract 5.8% in 2020 2.8% in 2021 due to “exceptionally high and multifaceted” risks related to the impact of the COVID-19 pandemic on the South American country’s debt dynamics. According to an IMF official, the government managed to cushion the pandemic impact on 23 million Brazilians through an emergency aid program which also helped to stabilize financial markets.

However, the economy remains fragile due to a growing fiscal deficit and rising public debt used to finance the stimulus. The IMF forecasts Brazil’s fiscal deficit to widen to 12% of GDP this year. The fund said the continuing outbreak, deteriorating business morale, and long-term economic damage posed significant risks to Brazil’s economic recovery.

Tags: All Products,AlwaysFree,Americas,Brazil,English,Latin America