Despite promising growth prospects, Brazil’s 2021 GDP to remain below 2019 level – UNCTAD

RIO DE JANEIRO, BRAZIL – According to a report by the United Nations Agency for Trade and Development (UNCTAD), by the end of 2021, the Brazilian Gross Domestic Product (GDP) will be nearly 10% lower, compared to the pre-pandemic growth trend.

Brazil should record an accumulated income loss of US$178.1 billion (about R$1 trillion) by the end of this year because of the coronavirus pandemic. The estimated loss amounts to US$102.2 billion in 2020 and US$75.9 billion this year.

Nevertheless, Brazil should resume growth, according to Richard Kozul-Wright, UNCTAD’s Director of Globalization and Development Strategies. The economist responsible for the survey believes that the country could grow up to 3.1% this year.

The study assessed that there was a real drop in income in virtually every country in the world. Global growth may reach 4.7% this year, driven by the recovery in the United States, with accelerated vaccination and the new stimulus package.

Read: Brazil’s economy now its largest since 2015, Central Bank activity index shows

Despite this advance, the world economy will be US$10 trillion weaker than the UN agency expected before the pandemic. According to UNCTAD, the economic situation should raise inequality, indebtedness, and insufficient investment issues.

Furthermore, economic insecurity will become the new “normal” for many countries. The study points out that Brazil, Turkey and the USA were positively surprising economies, with relief packages that mitigated the recession.

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