BRAZIL: IMF Raises 2018 GDP Growth Forecast From 1.5% To 1.9%

(RTTNews) - The International Monetary Fund (IMF) increased the forecast for Brazil's economic growth in 2018 from 1.5% to 1.9%, according to a report from Alejandro Werner, the director of the fund's Western Hemisphere Department. The Fund also expects a 2.1% growth in Brazil in 2019.

"After a severe recession in 2015 and 2016, the economic recovery is gaining strength, spurred by private consumption and investment," said Werner.

He added that inflation in 2017 fell to 2.95%, driven by a sharp decline in food prices due to an exceptional harvest.

"Our forecast for Brazil's growth in 2018 has been revised up significantly relative to the October 2017 WEO . However, the uncertain outcome of the 2018 general elections may weigh down economic growth."

Werner added that, to ensure fiscal sustainability, the Brazilian authorities plan to undertake a prolonged fiscal consolidation, which includes an ambitious reform of social security.