Brazil’s growth projection down for the 13th time

Banks keep reducing their estimate for Brazil’s GDP. Expectation now is that the economy will grow 1.23% in 2019.

Agência Brasil

Brasília – Economic growth projections from Brazilian financial market players keep sliding. The 2019 Gross Domestic Product (GDP) growth forecast eased for the 13th week back-to-back. This time, from 1.24% to 1.23%. The 2020, 2021 and 2022 forecasts remained flat at 2.50%.

The figures are from Focus Readout, a weekly report containing the results of a poll of banks regarding key economic indicators. The readout is published every Monday by the Central Bank of Brazil (BC).

Inflation as per the Extended National Consumer Price Index (IPCA) is seen ending the year at 4.07%, the same as in last week’s poll. The 2020 forecast remains at 4%, and the 2021 and 2022 forecasts also remained unchanged at 3.75%.

The benchmark interest rate, known as the Selic, is expected to remain at its all-time 6.5% low until the end of the 2019. The rate is seen ending 2020 at 7.25% per annum, ending 2021 at 8% per annum and 2022 at 7,50% per annum. US dollar is seen ending this year and the next at BRL 3.80.

Translated by Guilherme Miranda

Ricardo Almeida/ANPr

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