According to a report released by the International Monetary Fund on the 11th, Brazil's economic growth rate is expected to be 2.8% this year, lower than the global, Latin America and developing countries' average.

Brazil's Minister of Economy Paulo Guedes. "Sao Paulo's Page"

[Compiled by South American Overseas Chinese Daily Network Zou Xing reported on October 12] According to a report released by the International Monetary Fund (IMF) on the 11th, the economic growth rate of Brazil this year is expected to be 2.8%, lower than the average level of in global, Latin America and developing countries.

Brazil's São Paulo Page reported that the report was released during the IMF and World Bank's annual meetings. The conference was held in Washington, USA, and brought together politicians and economists from all over the world. Brazilian Economic Minister Paulo Guedes and Brazilian Central Bank 4 President Roberto Campos Neto attended the conference.

According to the IMF forecast, Brazil's GDP growth rate in 2022 will be 2.8%; the average growth rate of the global economy will be 3.2%; the figure in Latin America will be 3.5%, among which Argentina (4%), Colombia (7.6%), Bolivia (3.8%) and Uruguay (5.3%) have seen a significant increase; the figure for in emerging markets and developing economies will be 3.7%.

Brazil's economic growth forecast for next year is even less ideal. According to the IMF, Brazil's GDP growth rate will be only 1% next year, while the global average growth rate will be 2.7%. However, according to the forecasts of the Brazilian Central Bank, Brazil's GDP growth rates will be 2.7% and 2.5% in the next two years respectively. The report also pointed out that Brazil's inflation rate is expected to be 9.4% this year, maintaining a relatively high level, roughly the same as some economies in Latin America, such as Colombia (9.7%). Brazil's inflation rate is expected to drop to 4.7% by 2023.

IMF pointed out that the ongoing inflation is the biggest threat to the global economy, so the IMF advocates that central banks in various countries will make firm responses to inflation, but the agency also warns that raising interest rates above the necessary levels may push the economy to an unnecessary serious recession. Currently, Brazil's benchmark interest rate remains at 13.75%, the highest level since December 2016.

Regarding the IMF's prediction results, Brazilian Economic Minister Gedes responded that low expectations for Brazil's economic growth are the product of technical errors and political motivations.

In Gaides' view, there is a problem with the IMF prediction model , which puts public investment above private investment, while public investment in Brazil is decreasing and private investment is increasing.

Gedes proposed that the IMF had previously ignored the scale of global inflation and in some cases gave wrong policy guidance. Gedes also called on the IMF to make internal adjustments to strengthen supervision, policy consultation, and macroeconomic and financial analysis capabilities to "restore its lost credibility." In terms of responding to inflation, Gades insisted that "central banks of all countries should show unswerving determination in responding to inflation" and advocated that fiscal policies of all countries remain consistent.