May 11, local time, the United Nations released the “World Economic Situation and Outlook 2021” mid-year report shows that the impact of the Coronavirus outbreak, Brazil and other Latin American countries will continue to be at a low ebb for a long time. U.N. economists say Brazil’s per capita income between 2020 and 2021 could fall nearly 5 percent from pre-pandemic expectations because of the outbreak. But experts also predict that the recovery of the world’s major economies could boost latin America’s economic growth this year.
In a report released this month, the United Nations raised its forecast for global economic growth in 2021 to 5.4 percent from 4.7 percent in January, largely because of its higher forecasts for growth in both the two largest economies, 8.2 percent and 6.2 percent, respectively. In its outlook for Brazil’s economy, the United Nations slightly lowered its growth forecast for this year to 3 percent from 3.2 percent in January, but the report notes that the country’s growth forecast for this year has rebounded significantly from last year’s 4.1 percent growth.
The U.N. report says Latin America’s economy could rise 4.3 percent this year after the worst recession in a century last year. Economists believe a more positive recovery in the two largest economies will generate huge trade demand that will boost exports of commodities and industrial goods from Latin American countries, including Brazil, and boost growth in the region.