imf slashes brazil growth forecast for 2014
Last Updated : GMT 22:58:35
Arab Today, arab today
Arab Today, arab today

IMF slashes Brazil growth forecast for 2014

Arab Today, arab today

Arab Today, arab today IMF slashes Brazil growth forecast for 2014

Brazilian President Dilma Rousseff
Sao Paulo - AFP

The International Monetary Fund slashed its 2014 economic growth forecast for Brazil by a full percentage point Tuesday, to 0.3 percent, blaming weak investment and a consumer funk.
Brazil, Latin America's biggest economy and the world's seventh-largest, entered recession in the first half of the year, a painful reversal of the rapid growth it posted in the 2000s.
"Weak competitiveness, low business confidence, and tighter financial conditions (with interest rate hikes through April 2014) have constrained investment, and the ongoing moderation in employment and credit growth has been weighing on consumption," the IMF said.
Inflation has also reached the government target maximum of 6.3 percent, as reported by the IMF and the Central Bank of Brazil.
The IMF said the situation was being exacerbated by political uncertainty created ahead of a presidential run-off poll on October 26 between leftist incumbent Dilma Rousseff, who topped Sunday's first-round vote, and business favorite Aecio Neves.
"A moderate pick-up in activity is expected for 2015, with growth rising to 1.4 percent as the political uncertainty surrounding this year's presidential election dissipates," it said.
Between the BRICS countries (Brazil, Russia, India, China, and South Africa), only Russia, with 0.2 percent, is currently performing worse than the Latin American giant.
Investors accuse Rousseff, whose Workers' Party has now been in power for 12 years, of excessive interventionism in the economy.
Markets reacted excitedly to Neves reaching the second-round vote.
Sao Paulo's Bovespa stock index closed nearly five percent higher Monday and added another 0.5 percent Tuesday.
The IMF lowered its forecast across Latin America and the Caribbean, predicting 1.3 percent growth this year, down from a July forecast of 2.0 percent.
Next year the region is predicted to grow 2.2 percent, down from 2.6 percent in July.
Latin American commodity exporters could be weakened by shocks in external demand, on lower investment from key client China, as well as by "an abrupt rise in US interest rates."
"Many economies struggle to find new engines of sustainable growth in an environment of stagnant commodity prices and more binding supply bottlenecks," revealing the need for structural reform to boost investment and productivity.
The weaker outlook is being caused by "external factors, given weaker-than-expected export performance amid deteriorating terms of trade," the IMF said.
In Mexico, the region's second-largest economy, the growth forecast was steady at 2.4 percent this year, rising to 3.5 percent for 2015.
Despite "weak external demand and construction activity," the IMF said Mexican growth would pick up from 2015 due to landmark energy reforms and recovery in the United States.
The IMF warned that in Argentina, the region's third-largest economy, output was being choked by "macroeconomic and policy imbalances" fueling inflation, economic contraction and a weakening peso.
In Venezuela, the IMF decried "severe policy distortions that have led to widespread shortages, a collapse in growth, and inflation now exceeding 60 percent."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf slashes brazil growth forecast for 2014 imf slashes brazil growth forecast for 2014

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf slashes brazil growth forecast for 2014 imf slashes brazil growth forecast for 2014

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday