OECD forecasts recession of 2.8% in Brazil's economy in 2015

Brazil's economy should shrink 2.8% in 2015, according to new projections from the Organisation for Economic Cooperation and Development (OECD), which revised the forecasts made last June that predicted 0.8% recession in the Brazilian economy.

For next year, OECD forecasts are even worse for the country's global economic growth: projections went from 1.1% high to 0.7% contraction. In 2014, Brazil's GDP rose only 0.1%.

The OECD views the reduction in imports from China as a negative effect on emerging markets that have strong trade ties with China and are commodities exporters. According to OECD projections, China's growth for 2015 is expected to be 6.7% and 6.5% in 2016.

For European countries, the organization believes that the growth resumption is "disappointing" and projects a growth of 1.6% in 2015 and 1.9% in 2016. Japan should also deliver a poor performance, with a growth forecast of 0.6% in 2015 and 1.2% in 2016.

The United States should achieve growth projections and reach a growth of 2.4% in 2015 and 2.6% in 2016, driven by jobs growth and household consumption.

In this scenario, the OECD forecasts for the world economy a 3.0% growth this year, 0.1% lower than previous projections. Headquartered in Paris, the organization assembles 34 of the world's most advanced countries and is the successor to the Organization for European Economic Cooperation (OEEC). Brazil is not an OECD member country, but has worked closely with the organization.

Translated by Amarílis Anchieta