Brasilia – Financial institutions consulted by the Brazilian Central Bank reduced the country economic growth forecast for this year and 2020. The projection for Gross Domestic Product (GDP) growth was adjusted from 2.53% to 2.50% in 2019.
For the next year, the expectation fell from 2.60% to 2.50%. For 2021 and 2022, it remained at 2.50%. These are the forecasts by the financial institutions consulted weekly by the Central Bank on the main economic indicators.
The inflation, calculated through the Extended National Consumer Price Index (IPCA, the acronym in Portuguese) should remain at 4% this year. Last week, IPCA projection was at 4.01%. For 2020, the forecast remains at 4% and, for 2021 and 2022, it remains at 3.75%.
According to the financial market, SELIC should end 2019 at 7% per year and keep growing in 2020, ending the period at 8% per year, and remaining at this plateau in 2021 and 2022. The basic interest rate is now 6.5%.
The financial market projection for the dollar rate remains at BRL 3.75 in the end of the year, and BRL 3.78 at the end of 2020.
Translated by Guilherme Miranda
