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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

IMF Concludes Consultations with Brazil amid Expectations of Lower Growth


Wed 29 May 2024 | 08:55 PM
IMF
IMF
Taarek Refaat

A team from the International Monetary Fund (IMF) held discussions regarding the Article IV consultation with the Brazilian authorities, amid expectations of a decline in growth this year.

A statement issued by the International Monetary Fund today, Wednesday, stated that the Brazilian economy has been remarkably resilient as inflation has declined over the past two years, while growth is expected to decline to 2.1% this year from 2.9% last year.

The Fund expected inflation to reach 3.7 percent by the end of the year amid a recovery in the trade surplus through strong foreign direct investment and the implementation of value-added tax reform to enhance efficiency and accelerate hydrocarbon production, while investment in the green economy can enhance the country's economic potential.

The Fund monitored improved risks and a sound financial system, adequate foreign currency reserves, low reliance on foreign currency debt, large government cash buffers, and a flexible exchange rate that supports Brazil's resilience.