Brasília – The Brazilian economy should shrink 2.8% this year and 1% in 2016. So says the Central Bank’s Focus bulletin, a weekly poll of financial institutions covering the major economic indicators.
The Gross Domestic Product (GDP) shrinkage expectation for this year has gotten worse for the 11th straight week, and the forecast for 2016 has deteriorated for the eighth consecutive week. Last week’s shrinkage forecasts had been 2.7% for 2015 and 0.8% for next year.
The 2015 current account deficit estimate dropped from US$ 71 billion to US$ 70 billion. The trade surplus forecast has been revised to US$ 11 billion from last week’s US$ 10 billion. Foreign investment in Brazil is seen to reach US$ 65 billion.
The estimate for the price of the US dollar in Brazilian currency by the end of the year has been revised from R$ 3.86 to R$ 3.95. The projection for the end of 2016 remains at R$ 4.
*Translated by Gabriel Pomerancblum
