Brasília – Expectations for growth of the Brazilian economy this year were reduced by the Central Bank of Brazil last Friday (11). Projected growth, which was 4.50% four weeks ago, dropped to 4.29% in the previous study and again in the study disclosed on Monday (14), to 4.10%.
The reduction in expectations for the Gross Domestic Product (GDP) – the total of all goods and services produced in the country – is mainly due to stagnation of industrial production in recent months, shown by the Brazilian Institute for Geography and Statistics (IBGE) study last week. With this, the estimated growth in industrial production dropped from 5%, four weeks ago, to 4.10% in the current research.
The Focus Bulletin has also maintained projections of US$ 42 billion for the inflow of Foreign Direct Investment (FDI) in the productive sector this year, and expanded the trade balance surplus estimate (exports minus imports) from US$ 13 billion to US$ 13.5 billion. With this, the deficit estimated for the foreign current account, which was US$ 65.5 billion in the previous research, dropped to US$ 65 billion.
*Translated by Mark Ament
