Brasília – Brazilian economy should grow by 0.33% this year, according to estimates from financial institutions polled weekly by the Brazilian Central Bank (BC). Last week, the projection had stood at 0.48%. The estimate for Gross Domestic Product (GDP)’s growth has been reduced for the 16th consecutive week. For 2015, the projection has been revised down from 1.1% to 1.04%. As regards industrial output, the estimate is for a contraction of 1.98%, this year, and for a 1.5% increase in 2015.
The projection of financial institutions for the inflation rate, measured by the Broad Consumer Price Index (IPCA, in the Portuguese acronym), was maintained at 6.29%, both for 2014 and 2015. The estimate is above the midpoint of the target (4.5%) and below the top end of range (6.5%). The BC is entrusted with keeping the inflation rate within the target range and one of the tools used to influence the economic activity, and, consequently, inflation, is the benchmark interest rate, aka Selic.
The financial institutions’ projection for Selic, by the end of the year, has been maintained at the current level of 11% per annum. For the end of 2015, the projection was moved from 11.63% to 11.5% per annum. The projection for dollar price was adjusted from R$ 2.33 to R$ 2.30, by the end of 2014, and from R$ 2.49 to R$ 2.45, in 2015.
*Translated by Rodrigo Mendonça
