Brazil may grow 5% in economy, says Bolsonaro in Bahrain

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President Jair Bolsonaro (no party), while making a speech at the Arab-Brazilian Chamber of Commerce in Bahrain, this Tuesday (16), said that Brazil may grow by 5% in 2021.

Bolsonaro was analyzing the country’s economic situation before and during the Covid-19 pandemic when he made the comment with the projection.

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“Brazil was one of the five countries that behaved best in combating the virus. We ended 2020 with more people with a formal contract than 2019. We are almost done [2021] with the possibility of 5% growth in the economy”, he stated, attributing the forecast to the team of Economy Minister Paulo Guedes.

In addition, the president also stated that “our trade balance is one of the fastest growing in the world” when commenting on possible agreements between Brazil and Bahren.

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According to Priscila Yazbek, economics analyst at CNN, the projection made by Bolsonaro “is above market forecasts”, which reduced growth estimates to 4.88% in 2021 – with the possibility of reaching up to 4.5%.

This would make Brazil grow less than the global average, emerging or advanced countries, according to estimates by international bodies such as the International Monetary Fund (IMF).

This Tuesday, another analysis of the Focus Bulletin, from the Central Bank (BC), which gathers the estimate of more than 100 institutions in the financial market for the main economic indicators.

The analysis brings the prospect of financial market expectations for the performance of economic activity in 2022 to increase by 0.93%. This is the first time the threshold is below 1%

On the other hand, inflation estimates for this and next year continue to rise.

For 2021, the forecast for the Extended Consumer Price Index (IPCA), the country’s official inflation, increased from 8.49% to 9.77% in one month. In the same period, the expectation for the IPCA in 2022 increased from 4.18% to 4.79%.

*With information from Anna Rusi, from CNN Brasil Business

Reference: CNN Brasil

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