Good morning! Can Brazil defy the global trend of slowdown predicted by the IMF and regain growth in 2020? Plus, we’re covering Congress’ deal on an upcoming massive oil auction. And the president’s party has joined forces with … the opposition? (This newsletter is for platinum subscribers only. Become one now!)
IMF: Despite global slowdown, Brazil could regain growth in 2020
The International Monetary Fund has once again downgraded global growth forecasts for 2019, now at 3 percent. The fund talks about a “synchronized slowdown,” as the world witnesses its “slowest [growth] pace since the global financial crisis.” Still, in 2020, the IMF predicts that the Eurozone—as well as some developing economies—will be able to pick up some growth. Brazil is among them.
Why it matters. The IMF expects a 2-percent growth rate for Brazil in 2020. While the forecast is worse than it was back in April (at 2.5 percent), it still places Brazil in a better position than other similar economies. A decade ago, 2-percent growth would be considered underwhelming, but it is now a cause for celebration, in the face of Brazil’s recent struggles for economic recovery.
Caution. According to the IMF, there is “considerable uncertainty surrounding...