New aid will lift Brazil’s GDP to 3.8%, says Oxford Economics

The second round of emergency aid will boost Brazil’s GDP growth by 0.2 percentage point to 3.8% this year, writes Marcos Casarin, chief economist for Latin America at Oxford Economics, in a note. The firm estimates that households will spend half of the R$44 billion ($7.7 bn) in stimulus during 2021, and the rest will be saved or used for debt. This will increase consumption by 0.4% in the first quarter and 0.8% in the second quarter.

Source: Money Times