May 26, 2022

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World Bank cuts GDP forecast for Brazil, sees worst performance in emerging markets – 01/11/2022 – Market

The World Bank reduced the plan Growth of the Brazilian economy in 2022 It rose to 1.4% from 2.5% in June last year, according to a report released on Tuesday (11).

This is the lowest growth rate in 18 developing countries, the company said in a forecast. Considering the 28 economies in Latin America and the Caribbean, Brazil alone should overtake Haiti, for which stagnation is predicted.

Numbers are part of the document Global Economic Outlook.

According to the World Bank, global growth is expected to slow from 5.5% growth in 2021 to 4.1% in 2022 and 3.2% in 2023 as unwanted demand declines during epidemics and financial support and funding are reduced worldwide. By 2020, global GDP (GDP) will have shrunk by 3.4%.

By 2023, all advanced economies will have fully recovered from the devastating economic crisis. Emerging and emerging companies will be 4% lower than the previous trend, the company said. One explanation is that many emerging and emerging economies are gradually abandoning support policies to control inflationary pressures before recovering.

Brazil, once again stood alone Inflation rates And high interest rates, for example, the company predicts that global growth will be lower than average during that period. After a 3.9% decline in 2020Brazil’s GDP is expected to grow by 4.9%, 1.4% and 2.7% in the three years from 2021 to 2023, respectively.

Estimates for Brazil by the World Bank are higher than those made by the Brazilian central bank, with 4.4% in 2021 and 1% in 2022. The forecasts of the BC Focus survey with analysts show growth of 4.5% and 0.28%, respectively.

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“The fall in purchasing power is expected to slow the Brazilian economy to 1.4% in 2022 due to weaker investor sentiment, higher inflation, macroeconomic policy restrictions, declining demand in China and falling prices,” the report said. Latin America and the Caribbean at its link.

According to the company, growth in countries in the region is expected to slow to 2.6% this year from 6.7% last year. The movement was driven by restrictions on monetary and monetary policy, slower improvement in labor market conditions and less favorable external conditions for these countries.

According to the bank, by 2023 the region will lose per capita incomes to advanced economies and emerging economies in Asia and Europe.

According to the World Bank, after a strong recovery in 2021, the world economy is entering a sharp recession amid threats of new types of Covid-19s and rising inflation, debt and income inequality. These factors can affect the recovery of emerging and emerging economies.

The rapid growth of the Omigron variant will continue to affect economic activity in the medium term, the bank said. In addition, significant recessions in key economies, including the United States and China, will affect external demand in emerging and emerging economies.

“The global economy is simultaneously facing Covid-19, inflation and political uncertainty, while public spending and monetary policy are still in the unknown. Challenges related to growing inequality and security are particularly damaging to developing countries,” said David Malpas. World Bank.

“Integrated international action and comprehensive national policies in response are needed to put more countries on a positive development trajectory.”

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The report covers part of Kovit’s impact on global inequality. It is estimated that the epidemic has exacerbated global income inequality, somewhat reversing the decline achieved over the past two decades.

The epidemic has exacerbated inequalities in many areas of human activity, such as education and health care and access to the labor market, which were more prevalent among women and informal and less skilled workers.

“This trend has the potential to leave lasting scores: for example, the losses of human capital caused by disruptions in education can last for generations,” the report says.