Brazil truckers’ strike estimated to cost $4 billion to economy

The ten days of the strike staged by truck drivers have been estimated to cost some $ billion to the economy—0.2% of Brazil’s gross domestic product (GDP), the Finance Ministry reported Tuesday (12). Finance Minister Eduardo Guardia mentioned the figure during a Monday (11) meeting with investors in São Paulo.

The stoppage may cause the official 2.5% projected growth in the country’s GDP to be revised downwards. The percentage will be announced late in July.

On the last issue of the Focus market readout, a weekly study conducted by Brazil’s Central Bank surveying financial institutions, analysts estimate that the economy will grow only 1.94% in 2018. This was the sixth consecutive week with a drop in forecasts. A month ago, the prediction stood at 2.51%.

The minister did not specify the impact the truckers’ strike will have on inflation, as a result of the scarcity of food and the temporary hike in fuel prices brought about by the demonstrations.

The inflation estimated by banks, and measured by the National Broad Consumer Price Index (IPCA), is reported to have increased from 3.65% to 3.82% in 2018, also as per data in Focus. The forecasts by the Finance Ministry for the inflation will also be released late in July.