Brazil sliding into deep, coronavirus-linked recession in 2020: Goldman, JPMorgan
MARCH 18, 2020 / 6:54 PM / UPDATED 7 HOURS AGO
Jamie McGeever
2 MIN READ
BRASILIA (Reuters) - Economists at Goldman Sachs and JPMorgan said on Wednesday they expected Brazil’s economy to tip into recession this year as the global coronavirus pandemic pummels demand, investment and trade.
Goldman Sachs slashed its 2020 growth forecast to -0.9% from 1.5% only two weeks ago, while JP Morgan went further to predict that Latin America’s largest economy will shrink by 1.0%.
These are among the most gloomy outlooks for Brazil among the world’s big banks, most of which had estimated growth of between 2.0 and 2.5% at the start of the year. The reversals were prompted by the scale of the coronavirus shock.
“Global and domestic dynamics take a turn for the worse. Recession seems unavoidable,” said JP Morgan economists in a note on Wednesday.
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