Brazil government to cut 2020 GDP outlook in line with market: official

BRASILIA, March 19 (Reuters) – The Brazilian government will announce its new economic growth forecasts on Friday, which will be “well below” the revised forecast of 2.1% announced last week, said the special secretary of the Ministry of Economy , Waldery Rodrigues.

“(It is) in line with the market. In fact, several projections have already indicated values ​​between 0.5% and 0%. Our numbers reflect all of these changes,” Rodrigues said.

Last week, the government lowered its forecast for 2020 gross domestic product from 2.4% to 2.1%, and last Friday, Economy Minister Paulo Guedes was optimistic that growth could reach 2.5%.

But a wave of private sector estimates in recent days that take into account the likely impact of the global coronavirus pandemic suggests that Brazil will barely grow at all this year and will likely fall into recession.

(By Gabriel Ponte; Edited in Spanish by Juana Casas)