By The Rio Times | Created at 2025-01-17 09:56:35 | Updated at 2025-01-31 08:59:02
1 week ago
The World Bank’s Global Economic Prospects report predicts Brazil’s economy will grow by 2.2% in 2025. This forecast comes amid a complex global economic environment.
The Brazilian GDP is expected to close 2024 at 3.2% and reach 2.3% in 2026. Developing countries, including Brazil, face hurdles in catching up to advanced economies.
The global economy is projected to maintain a 2.7% growth rate in 2025 and 2026. This matches the pace set in 2024. Developing nations are expected to sustain a 4% growth rate over the next two years.
However, this may not suffice to reduce poverty and achieve broader development goals. High interest rates in Brazil and Mexico remain a concern for economic growth.
China’s slowing demand has impacted exports in the region. Argentina’s trade surplus has grown due to reduced imports. Brazil’s 2.2% growth forecast for this year matches Chile’s.
Brazil’s Economy: 2.2% Growth Forecast for 2025. (Photo Internet reproduction)It surpasses Mexico’s 1.5% but falls short of Argentina’s projected 5% growth. Guyana stands out with a 12.3% growth forecast. This small nation is experiencing an economic boom fueled by oil field exploitation.
Economic Outlook
The report paints a positive future for Latin America and the Caribbean (LAC) region. As Argentina recovers and inflation drops, LAC’s growth should hit 2.5% in 2025.
It may further increase to 2.6% in 2026. Commodity prices are anticipated to boost LAC exports. However, China’s moderate growth could limit demand for essential commodities.
The World Bank attributes Brazil’s slowing growth to restrictive monetary policies and limited fiscal support. Developing economies have driven 60% of global growth.
However, the next 25 years may prove more challenging for these nations. Indermit Gill, the World Bank‘s Chief Economist, warns of alarming headwinds.
These include high debt levels, low investment growth, and rising climate change-related costs. These factors may hinder the progress of developing economies in the coming years.
