IMF raises Brazil 2020 GDP forecast to -5.8% from -9.1%

• The International Monetary Fund on Monday revised up its 2020 economic outlook for Brazil, but warned that risks remain “exceptionally high and multifaceted,” and government debt is on course to end the year around 100% of gross domestic product.
• The IMF now expects Latin America’s largest economy to shrink by 5.8% this year, much less than the 9.1% contraction it had previously estimated, and predicts a “partial” recovery and 2.8% growth next year.
• In a document outlining the preliminary findings from a recent staff visit to Brazil, the IMF said “significant” downside risks include a second wave of the pandemic, “long-term scarring” from a long recession, and confidence shocks given Brazil’s huge public debt.

(Source: Reuters)