Credit rating agency Fitch Ratings estimated a 3.3 percent contraction of the Brazilian economy in 2016, slightly better than what it predicted in March, according to a report released Wednesday.
The Brazilian economy is expected to grow 0.7 percent in 2017 and 2 percent in 2018, the report said. Fitch Ratings said that the stabilization of commodity prices will help improve the emerging economies, including Brazil.
The Brazilian economy is expected to stabilize before the end of this year and a rise in exports has helped compensate the low local demand, according to the agency.
Fitch Ratings downgraded Brazil's credit rating last year, making the country lose its investment grade. Moody's and Standard and Poor's also cut Brazil's rating to junk bond status.
According to Fitch, the world's 20 largest economies will grow by 2.5 percent this year and 3 percent in 2017. However, the agency alerted the impact of Britain's exit from the European Union on the global economy.
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