The IMF reduced its growth forecast for Brazil in 2014 and 2015.
According to the IMF´s World Economic Outlook report which raises the global growth forecast, Brazil is set to grow 2.3% (revised from 2.5%) and 2.8% (revised from 3.2%) in 2014 and 2015 respectively. The report was released this morning.
The global economy is expected to grow 3.7% this year and 3.9% the next. According to the study growth in the United States looks "increasingly solid" and will be greater than Brazil´s over the next two years: 2.8% in 2014 and 3% in 2015.
China will moderate its growth at 7.5% this year and 7.3% the next. But the IMF says Chinese growth is still heavily driven by public investment as opposed to consumption.
The report also says that China needs to contain risks in its financial sector without reducing growth excessively. A "delicate balancing act" according to the study.
Emerging economies will be exposed to risks associated with capital flight towards the United States at the prospect of the US reducing its money creation (putting fewer dollars on the market) and higher interest rates.
But the Fund says that emerging markets will benefit from the economic recovery of richer nations.
Source:fohla.uol.internacional
