Macroeconomy/Finance

Wall St banks cut Brazil 2020 GDP growth forecast further below 2%

Bank of America Merrill Lynch cut its 2020 Brazilian economic growth outlook to 1.9% from 2.2%, and JP Morgan to 1.8% from 1.9%. Observers say the forecast is highly sensitive for President Jair Bolsonaro’s administration. Economy Minister Paulo Guedes and other officials have consistently said the government’s economic reforms and record low interest rates will deliver growth this year comfortably above 2%, with Guedes confident of 2.5%. JP Morgan said investment growth this year will now be lower at 5.0%, while exports will fall 0.5% compared with an earlier forecast of 0.5% expansion.

Source: Reuters