Brazil’s GDP could grow if vaccination speeds up, says OECD

gdp economy ministry
Brazil’s Economy Ministry building. Photo: Marcello Casal Jr./ABr

In its latest report on global economic prospects, the Organization for Economic Co-operation and Development (OECD) stated that the Brazilian GDP could grow by around 3.7 percent this year and 2.5 percent in 2022 if the country manages to control the Covid-19 pandemic and increase its vaccination rate.  

The organization called the health situation in Brazil “worrisome,” causing uncertainty about the country’s hopes for economic recovery. The report points out that the situation was aggravated by the vicious spread of the virus at the beginning of 2021 combined with uncoordinated restriction measures.

However, according to the organization, more recent data suggests the pandemic is having a weaker negative effect on economic activity compared to last year. 

Markets raised Brazil’s GDP forecasts for this year on Monday morning. According to the Central Bank’s Focus Report survey, 2021 GDP growth is set to reach 3.96 percent, up from 3.52 percent. Official GDP data for Q1 2021 will be released tomorrow.