Brasília – Financial market analysts consulted by the Central Bank of Brazil (BC) have expanded forecasts for expansion of the economy of Brazil this year. The estimate for expansion on the Gross Domestic Product (GDP) rose from 7.55% to 7.60%. For 2011, the GDP growth forecasted is 4.5%, which has been maintained for 47 weeks running.
Despite the estimate for GDP growth, the Focus Bulletin, disclosed weekly by the BC, has shown a reduction in the forecasted growth in industrial production, which dropped from 11.27% to 11.22%. For next year, the forecasted expansion in industrial production was maintained at 4.20%.
The projection for the ration between net public sector debt and GDP was reduced from 40.89% to 40.87% in 2010 and from 39.64% to 39.57% in 2011. Expectations for exchange rates are for one dollar to be sold for 1.70 Brazilian real this year, whereas for 2011, the estimate has dropped from 1.79 to 1.78 reals per dollar.
The forecast for the trade surplus (the positive balance between exports and imports) remains at US$ 16 billion this year, and has been altered from US$ 9 billion to US$ 8 billion in 2011.
For the deficit in current account transactions (the Brazilian purchase and sale abroad of goods and services) the forecast this year has been maintained at US$ 50 billion. For 2011, the estimate has grown from the previous US$ 63.25 billion to US$ 64.50 billion.
Expectations are for foreign direct investment (funds turned to the productive sector in the country) to remain at US$ 30 billion this year. For 2011, the forecast has been altered from US$ 36 billion to US$ 37 billion.
*Translated by Mark Ament
