Brasília – Financial institutions surveyed by the Brazilian Central Bank (BC) are expecting a slightly steeper decline for the economy this year. The estimate for the decrease of the Gross Domestic Product (GDP) went from 3.16% to 3.20%. For 2017, the forecast went from growth of 1.23% to 1.30%. The estimates are part of the BC’s weekly survey on the economy’s main indicators.
Regarding inflation, as measured by the Extended National Consumer Price Index (IPCA), the financial institutions kept it at 7.34%. For 2017, the estimate went from 5.14% to 5.12%. Both exceed the official target center established at 4.5%. This year’s forecast also surpasses the upper limit of the target at 6.5%. The target for 2017 was set at 6%.
Concerning the benchmark interest rates, for the end of 2016 the forecast points to 13.75% per year. For the end of 2017, the estimate changed from 11.25% to 11% per year. Forecasts on the price of the dollar went from BRL 3.29 to BRL 3.26 for the end of 2016, and remains at BRL 3.45 for the end of 2017.
*Translated by Sérgio Kakitani
