IMF lowers Brazil's growth forecast to 2,5%.

Agency Brazil - The International Monetary Fund (IMF) has lowered its forecast for Brazilian economic growth this year, reiterating a scenario of international "instability" and citing "domestic vulnerabilities" in emerging countries. In line with downward adjustments made by the market, the IMF now estimates that the Brazilian economy will grow by 2,5% by December – a forecast half a percentage point lower than the estimate released in April.

In an update to its macroeconomic report, the World Economic Outlook, released this Monday, the 16th, in Washington, D.C., the IMF notes that "growth momentum has slowed in several emerging economies, especially Brazil, China, and India." "This partly reflects a weaker external environment, but domestic demand has also slowed sharply in response to capacity constraints and a restrictive monetary policy over the past year."

The document also states that: "[In the short term] activity in many emerging markets should be supported by the monetary easing initiated in late 2011 and early 2012 and, in net fuel importing [countries], by lower oil prices."

For 2013, the IMF estimates that Brazil's Gross Domestic Product (GDP) growth will reach 4,6% – half a percentage point higher than the projection announced three months ago. According to the fund, the higher growth next year will be driven by the construction projects for the 2014 World Cup.

A better-than-expected first half of the year should still guarantee global growth of 3,5% this year, according to IMF forecasts. For 2013, the forecast is for an expansion of 3,9%, 0,2 percentage points less than the estimate released in April. Economists also warn that these results will only be achieved if there is firmer political action from leaders of developed countries to reduce global economic instability.

In the eurozone, the IMF reiterated that continued progress is needed and suggested the creation of a single supervisory body for the region's banks and mechanisms to "break the link between bank and sovereign debt," allowing the European rescue fund to lend money directly to struggling banks.

In the United States, the major concern is the so-called fiscal cliff, a series of spending cuts and the end of tax breaks that could be adopted as early as January if the US Congress does not reach a plan to implement them gradually. The IMF believes that, despite being divided, the US legislature will postpone the implementation of the measures, avoiding a slowdown in the economy.