Banks revise up forecast for Brazil’s GDP

Financial market increased its projection for Brazilian economy growth from 0.81% to 0.83%.

Guilherme Miranda

Brasília – The financial market increased its projection for the Brazilian economy growth. According to the Focus Readout, survey released every week by the Central Bank (BC), the Gross Domestic Product (GDP) growth forecast was changed from 0.81% to 0.83% this year. The survey says the 2020 forecast also climbed from 2.1% to 2.2%. Estimates for 2021 and 2022 saw no change: 2.5%.

The inflation estimate, as per the Extended National Consumer Price Index (IPCA), decreased from 3.76% to 3.71%. There was no chance in the following years estimates: 3.90% in 2020, 3.75% in 2021, and 3.5% in 2022. The financial market sees the benchmark interest rate, known as Selic, ending this year at 5.5% per annum. The Selic is expected to end 2020 at 5.5%, and to climb to 7% per annum at the end of both 2021 and 2022. The forecast for the dollar value by the end of this year climbed from BRL 3.75 to BRL 3.78 and, for 2020, from BRL 3.80 to BRL 3.81.

Translated by Guilherme Miranda

Press Release

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