World Bank cuts 2016 GDP forecasts for Portuguese-speaking Countries

The World Bank Group has cut its 2016 growth estimates for several Portuguese-speaking Countries.

In its latest ‘Global Economic Prospects’ report, published this week, the World Bank forecast Brazil’s gross domestic product (GDP) would contract by 4 percent year-on-year in 2016, extending the country’s recession into a third consecutive year. The Washington-based institution had forecast in January that Brazil would record a GDP decline of 2.5 percent in 2016.

Angola’s economy will grow by 0.9 percent in 2016, said the World Bank, an estimate that compared with a January forecast for a 3.3 percent expansion rate.

The World Bank also slashed its 2016 growth forecast for Mozambique, from 6.5 percent to 5.8 percent.

Among the other Portuguese-speaking Countries, Cape Verde’s economy is expected to grow 1.5 percent in 2016, stated the World Bank, revising its January forecast of a 3.5 percent GDP increase.

The body also revised downward its 2016 growth forecast for East Timor, from 6.9 percent to 5.0 percent.

Guinea-Bissau was the only Portuguese-speaking Country to see its GDP estimate boosted in the latest report from the World Bank. The institution expects the African nation’s economy to expand by 5.7 percent, compared to its earlier 4.9 percent estimate.

The report gave no forecast for Portugal.

The bank maintained its January prediction that the Chinese economy is likely to expand by 6.7 percent in 2016.

The World Bank downgraded its 2016 global growth forecast to 2.4 percent from the 2.9 percent pace projected in January. “The move is due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows,” it stated.