World Bank forecasts global growth of 5.6% in 2021; Brazil should advance 3%

Jun, 08, 2021 Posted by Ruth Hollard

Week 202125

The global economy is expected to expand 5.6% in 2021, the fastest post-recession pace in 80 years, mainly due to the strong recovery of some key economies. However, many emerging markets and developing economies will continue to fight the Covid-19 pandemic and its aftermath says the World Bank in its June Global Economic Outlook report.

Despite the recovery, global production is expected to end this year around 2% below pre-pandemic projections. Loss of per-capita income will not be reversed until 2022 in about two-thirds of emerging markets and developing economies.

Among low-income economies, where vaccination came later, the effects of the pandemic have reversed advances in poverty reduction and aggravated the situation of social insecurity and other long-standing problems.

The growth forecast for Brazil was 3%, the same index published in January. The Latin America and Caribbean region is expected to grow 4.4% in 2021, considering the moderate advance of vaccination in most countries, the loosening of mobility restrictions, the positive repercussions of advanced economies, the strong demand for raw material from China, and rising commodity prices. Growth projections are expected to drop to 3% in 2022. In 2022, GDP per capita in the region is projected to be 2.5% below the 2019 index.

Source: Valor Econômico

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