World Bank increases Brazil’s GDP in 2021, but reduces it to 2022

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O world Bank increased its growth forecast for Brazil in 2021, but revised downward the START expected for next year. The new numbers are included in the institution’s semiannual report released on Wednesday.

For this year, the expectation is growth of 5.3%. In the previous report, released in June, the calculation was an increase of 4.5%. For next year, the World Bank started to forecast growth of 1.7%, against 2.5% in the previous document.

Both numbers are below the average for Latin America and the Caribbean calculated by the institution. According to the report, the region is expected to grow 6.3% in 2021 and 2.8% in 2022.

The document points out that the region is at a slower pace of recovery than imagined and emphasizes that Covid-19 has brought marks on the economy and society “that will take years to heal”.

“The need to recover dynamic, inclusive and sustainable growth to face the consequences of the pandemic and seek solutions for historical social needs has never been more pressing. At the same time, despite the emergence of some “green shoots”, which broaden the prospects for economic growth, it has never been more urgent to face challenges that have been ignored for a long time, which impede the region’s progress”, points out the report.

The World Bank lists five main challenges for the region’s economies. The first is virus recurrence. If contaminations rise again, it will lead to a decline in economic activity. The second is reducing global liquidity to contain inflation, which raises interest rates and affects demand.