São Paulo – The Brazilian Central Bank changed up its economic growth forecast for this and next year. Gross Domestic Product (GDP) is expected to widen by 1% this year, up from September’s 0.7% forecast, in the Inflation Report released online this Thursday (21) on the authority’s website. The 2018 growth forecast moved up from 2.2% to 2.6%.
This year, agricultural output should be up 12.8%, while industry activity is expected to see a 0.3% drop. The services sector is expected to grow by 0.3%, with investment dropping 2.5% and household consumption going up 1.2%.
For 2018, the Central Bank believes agricultural output will decline by 0.4%, with industry growing 2.9% and services going up 2.4%. Household consumption is expected to be up 3% as income and credit improve. Investments should be up 3%, driven by an expected improvement in the civil construction industry.
*Translated by Gabriel Pomerancblum
