São Paulo – The Brazilian financial market expects Gross Domestic Product (GDP) to shrink even more this year. The Focus Bulletin issued this Monday (11th) says Brazil’s domestic economy will contract by 1.2%. Last week, the forecast had been 1.18%. For next year, the analysts polled see 1% growth.
They also believe the benchmark interest rate (known as Selic) will be 13.5% by the end of this year and 11.63% in 2016. The forecast for the extended consumer inflation index (IPCA) climbed from 8.26% to 8.29% for this year. In 2016, a 5.51% inflation rate is expected.
The bulletin also shows industrial production is expected to be down 2.5% in 2015 and up 1.50% next year. The exchange rate estimate for 2015 is R$ 3.20 for US$ 1. In 2016, US$ 1 will be worth R$ 3.30, according to the poll.
The poll’s respondents believe Brazil will post a US$ 3 billion trade surplus in 2015.
*Translated by Gabriel Pomerancblum
