The International Monetary Fund forecasts that Brazilian gross domestic product will expand by 0.2 percent this year.

IMF says in the latest edition of its World Economic Outlook that it expects Brazilian economic growth to accelerate to 1.7 percent next year.

The fund bases its forecasts of growth on the diminution of political uncertainty, the expansionary monetary policy and progress in economic reform.

Brazilian GDP contracted by 3.6 percent last year, shrinking for the second year in a row.