IMF Says Brazil Economy to Shrink 3% in 2015 on Political Crisis
- Fund expects deeper recession in 2015 than economists predict
- Latin America’s biggest economy to drag down entire region
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The International Monetary Fund forecasts Brazil’s economy this year will contract more than expected by economists as President Dilma Rousseff’s administration is engulfed by the deepest political crisis in more than two decades.
The IMF said in its World Economic Outlook released Tuesday that Latin America’s largest economy will shrink 3 percent this year. That’s double the 1.5 percent contraction published in its July outlook, and worse than the median 2.85 percent forecast from about 100 economists in the central bank’s weekly Focus survey.