Highly affected by Covid-19, the Brazilian GDP is expected to plunge by 8 percent in 2020 — the second-worst drop in the world — according to the World Bank. The institution now expects the global economy to fall 5.2 percent this year, in what would be the worst global recession in eight decades. Brazil’s performance is only behind the 9.1-percent plunge expected for the Eurozone’s economic output.
“Brazil’s economy is projected to shrink by 8 percent due to lockdowns, plunging investment, supply chain disruptions, and soft global commodity prices,” says the report, adding that the crash would be followed by a mild 2.2 percent growth in 2021.
Latin America’s output is expected to drop by 7.2 percent, also weighed down by the 7.5-percent drop expected for Mexico’s GDP and 7.3-percent fall in Argentina.
The report also asks for global cooperation and highlights that emerging markets are particularly vulnerable to Covid-19. Therefore, “it is critical to strengthen their public health care systems, to address the challenges posed by informality and limited safety nets, and, once the health crisis abates, to undertake reforms that enable strong and sustainable growth.”
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