Brazil Cuts Growth Forecast and Seeks Supplementary Funding

By Newsfeed/Reuters

RIO DE JANEIRO, BRAZIL – Brazil’s government will cut its forecast for 2019 economic growth below 2 percent from the current 2.2 percent, and seek additional funding of around R$248 (US$63) billion from state-run BNDES development bank to meet current expenditure, Economy Ministry officials said on Tuesday.

Waldery Rodrigues, special secretary to the ministry, said the growth forecasts would be revised on May 22, while Economy Minister Paulo Guedes said the funding was needed to pay bills and reflected the government’s severe fiscal difficulties.

Both were speaking at a public hearing in Brasilia of a budget committee made up of Brazilian deputies and senators.