Brazil urgently needs to create policies to accelerate growth, says World Bank president.
According to David Malpass, growth is the only way for President Luiz Inácio Lula da Silva's government to fulfill its social and environmental promises.
247 - World Bank President David Malpass stated that it is "urgent" for Brazil to stimulate economic growth, given the challenging prospects faced by developing countries.
“The slowdown also indicates investor concerns. It’s a global challenge: investment flows into developing countries have declined and there’s an outflow of money,” said David Malpass in Washington, where meetings are taking place between members of the institution and the International Monetary Fund (IMF).
According to the World Bank, Brazil's Gross Domestic Product (GDP) is expected to grow by 0,8% in 2023, below the average expansion for Latin America, estimated at 1,4% for this year. The IMF, however, estimates that the Brazilian economy will grow by 0,9% in 2023.
According to David Malpass, growth is the only way for President Luiz Inácio Lula da Silva's government to fulfill its social and environmental promises. "It is urgent for Brazil to have sound economic policies to accelerate growth, which will allow the government to spend on social and environmental goals related to climate change," he said.
He further stated that it is necessary to maintain "fiscal discipline" and have "efficient" regulatory policies to ensure sustainable growth.
Malpass is stepping down as president of the World Bank. He will be replaced by the businessman. Ajay Banga, former CEO of Mastercard.