Brasília – Projections of Brazilian financial institutions for the country’s economic growth this year have been revised down for the third consecutive week. According to a weekly poll conducted by the Central Bank, the growth estimate for the Gross Domestic Product (GDP), i.e. the sum of all goods and services produced in the country, were lowered from 2.93% to 2.77%. In 2014, the estimate has also been revised down, from 3.5% to 3.4%.
The industrial output growth estimate has been adjusted from 2.43% to 2.5% this year and from 3.1% to 3% in 2014. The projection of financial institutions for the net public sector debt-to-GDP ratio has remained at 35% this year and 34.9% next year. The dollar-to-real ratio went from R$ 2.03 to R$ 2.05 for US$ 1 by the end of 2013 and R$ 2.07 to R$ 2.1 for US$ 1 by the end of 2014.
Last Friday (31st), the Central Bank intervened on the foreign exchange market. Still, the US dollar closed the month at the highest level of the last four years, in relation to the Brazilian real. The commercial exchange rate for the dollar closed at R$ 2.1412 for the purchase and R$ 2.1424 for the sale, up 1.36%. In May, the US dollar was up 7.04%, the highest monthly increase since September 2011. From January to May, the dollar has appreciated 4.78% relative to the Brazilian real.
*Translated by Gabriel Pomerancblum
