BC revises down Brazilian GDP forecast

Central Bank of Brazil revised down the country’s economic growth forecast to 0.8% from 2%.

Agência Brasil

Brasília – The Central Bank of Brazil (BC) revised down its economic growth estimate for this year. The Gross Domestic Product (GDP) forecast slid from 2% to 0.8. This information is available at BC’s quarterly publication Inflation Report, made public this Thursday (28) in Brasília.

Among the reasons for the revision, BC mentions a lower-than-expected growth in Q1, a lack of clear signs of recovery in the first economic indicators for Q2, and a “decrease of the company and consumer confidence indexes, which impact the perspectives of consumption and investment.”

Moreover, BC stresses the growth forecast at 0.8% “depends on the continuity of necessary reforms and adjustments in the Brazilian economy and incorporates the expectation of a growing activity recovery over the rest of the year.”

Translated by Guilherme Miranda

Lucio Tavora/AFP

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