Such is the Brazilian Central Bank’s 2016 recession forecast, based on a poll of financial institutions. The estimate for 2015 remained flat at 3.7%.
Author: Agência Brasil
The Brazilian Central Bank released new Gross Domestic Product (GDP) projections this Wednesday (23). Next year, 1.9% shrinkage is expected, with agribusiness growing 0.5%.
The estimate for 2016 is from the Brazilian minister of Development, Industry and Foreign Trade Armando Monteiro. He also said mineral commodity prices are likely to stay flat next year.
In November from October, Brazil’s debt widened from BRL 2.64 trillion to BRL 2.71 trillion (USD 661.9 billion to USD 679.4 billion), the National Treasury Department reported.
President Dilma Rousseff said, at the Mercosur summit, that the strengthening of the bloc depends on the adoption of more agile trade cooperation methods.
Deficit-to-GDP ratio will be 2.66% at USD 41 billion next year, based on Brazilian Central Bank projections. In 2015, the deficit is expected to be 3.48% of GDP, at USD 62 billion.
Financial institutions surveyed by the Brazilian Central Bank raised their estimated inflation rate for 2015, which stood at 10.61%. For next year, the inflation rate is expected to be at 6.87%.
An index measured by the Brazilian Central Bank shows a decline in the economy in October from September and a 6.19% drop from October 2014.
The Brazilian state-run oil company produced 1.023 million barrels of oil equivalent per day in November, a 1.8% increase over October.
Brazil’s National Federation of Industry estimates that the GDP will shrink this year and in 2016. Inflation is expected to be 10.5% in 2015 and 6.8% next year.
The state-owned company’s chief Aldemir Bendine told the press that it will emerge stronger and more mature from the crisis, and that performance will improve within four years.
The Brazilian Central Bank’s governor, Alexandre Tombini, said that next year the rise in prices will stand within the limit of 6.5% and that he expects the inflation rate to hit the target center of 4.5% in two years.
Demand increased in November from October in Brazil, according to a survey conducted by Serasa Experian. The biggest increment came from large businesses.
The Brazilian federal government estimates that passenger numbers at airports across the country are set to drop 20% over the comparable period in 2014.
