Government improves growth projections for 2020 amid pandemic slide

The Brazilian government has improved its projections for the country’s GDP in 2020. By the end of the year, the Economy Ministry predicts a 4.5 percent slide, as opposed to previous forecasts of 4.7 percent in September. The main driver for these heightened expectations are the positive results for industry and retail in the third quarter, with monthly surveys suggesting both sectors will see growth of over 20 percent in comparison to Q2, thus recovering their pre-pandemic standing.

Meanwhile, inflation forecasts have increased for 2020, jumping to 3.13 percent for the year — up from 1.83 percent and largely down to jumps in food prices.

Looking ahead to next year, the Economy Ministry has maintained its growth projection of 3.2 percent.

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