Brasília – Financial market analysts have revised down the growth projection for Brazil’s 2014 Gross Domestic Product (GDP) once again. As per the Central Bank’s Focus bulletin issued this Monday (17th), the GDP should be up 1.79%, as against 1.9% in last week’s forecast. Industry output should be up 1.93%.
The analysts polled for the publication are expecting the inflation rate measured by the Broad Consumer Price Index (IPCA, in the Portuguese acronym) to be up 5.93% this year, as against 5.89% in the previous forecast. The end-of-year exchange rate expectation is up again, from R$ 2.47 to R$ 2.48 for US$ 1. The benchmark interest rate forecast has been maintained at 11.25%.
The current account deficit forecast has been revised up from US$ 73 billion to US$ 74.6 billion, partly as a result of the trade surplus’ downward revision from US$ 8.01 billion to US$ 7.9 billion. The foreign direct investment (FDI) forecast has been revised up from US$ 57.5 billion to US$ 58 billion.
*Translated by Gabriel Pomerancblum
