LatinNews Daily - 29 May 2024

*The International Monetary Fund (IMF) has completed an Article IV consultation visit to Brazil and released a statement with its preliminary findings, in which it praised the economy’s “remarkable resilience” as the country lowered inflation and improved its medium-term growth outlook. According to the statement, Brazil’s short-term growth outlook is expected to moderate from the 2.9% annual GDP growth registered for 2023, with the IMF projecting 2.1% growth in 2024 and 2.4% in 2025. However, the medium-term growth projection has been raised to 2.5%, up from the 2.0% forecast that the IMF made after its Article IV consultation last year. Inflation in 2024 is expected to close the year at 3.7% and to converge to the central bank (BCB) target of 3.0% in the first half of 2026. The IMF stated that it welcomed “the authorities’ commitment to improving Brazil’s fiscal position” and highlighted the country’s “ambitious sustainable and inclusive growth agenda”. It also praised the landmark reform of the tax code approved by congress last year, which the IMF expects will “strengthen productivity, create formal jobs, and improve equity”.