Brazil’s central bank to release first quarter GDP figures
Amid the bruising toll absorbed by the country’s health infrastructure and economy, Brazil will today release its first quarter GDP figures.
By the fourth quarter of 2019, the Brazilian economy slowly began to recover from a drawn-out recession and experienced its strongest growth rate since late 2017. However, the COVID-19 pandemic has hamstrung Latin America’s largest economy; the IMF expects it to contract by at least 5% this year.
Brazil’s general economic performance has been damaged by the forced interruption of market-friendly economic reforms favoured by international investors. The extended programme of privatisations, deregulation in certain markets and reductions in the federal bureaucracy have proven unviable in the current climate. Bearish investor sentiment and supply chain disruptions beneath the shadow of a global recession have also contributed to the slump.
Despite this adverse situation, the central bank and federal government continue to propose stimulus actions to maintain the health of the economy. The confirmation of GDP contraction will likely be followed by additional measures to buttress private sector employment. The government is expected to relax labour laws and expand market liquidity to ensure financial stability for the weeks ahead.
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