and. The economies of both countries are expected to recover in 2021: Mexican GDP will grow by 3.5% and that of Brazil by 2.8%.
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This story originally appeared in the World Economic Forum
The International Monetary Fund (IMF) has updated its global economic forecasts. According to his latest predictions World economy will shrink by 4.4% in 2020. This represents a slight improvement over the agency’s latest June 2020 outlook, and the company estimates that it is due in part to China’s rapid reopening and incentives in the rich countries at the root of the coronavirus pandemic. Despite this slight improvement, the IMF warns that the economic recovery “is likely to be long, uneven and uncertain”.
According to IMF calculations, Spain will suffer the biggest collapse of industrialized countries this year as its GDP will fall by 12.8%. However, the forecasts for 2021 are more optimistic as Spain’s GDP is expected to grow by 7.2%. In 2020, the other so-called “advanced economies” such as the United States (-4.3%), Germany (-6.0), Japan (-5.3) or the United Kingdom (-9.8%) the decline in GDP will be less. China, on the other hand, will avoid a recession with a real GDP increase of 1.9 percent.
Both major Latin American economies, Brazil and MexicoThis year they will see a decline of 5.8% and 9% of their GDP, respectively. The economies of both countries are expected to recover in 2021: Mexican GDP will grow by 3.5% and that of Brazil by 2.8%.