Oxford Economics: New pandemic aid will boost Brazil’s GDP to 3.8% in 2021

The company estimates that households will spend half of the R$44 billion in stimulus payments on consumption during 2021.

RIO DE JANEIRO, BRAZIL - The second round of emergency aid will boost Brazil's GDP growth by 0.2 percentage point to 3.8% this year, writes Marcos Casarin, Oxford Economics' chief economist for Latin America.

The company estimates that households will spend half of the R$44 (US$7.6) billion in stimulus payments received during 2021, and the rest will be saved or used for debt. This will increase consumption by 0.4% in the first quarter and by 0.8% in the second quarter.

The second round of aid will have a fiscal impact that will likely . . .

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