Brasília – A poll of Brazilian financial market players shows expected economic growth picking up and inflation easing. The Gross Domestic Product (GDP) forecast in the Central Bank’s weekly Focus Bulletin moved from 0,80% to 0.87% in 2019. The 2.10% forecast for 2010 and the 2.50% forecast for 2021 and 2022 all remained unchanged.
Inflation as per the Extended National Consumer Price Index is seen ending the year at 3.59%, 3.65% as of last week. Projections regarding the next few years remained flat, at 3.85% in 2020, 3.75% in 2021 and 3.50% in 2022. The benchmark interest rate (aka Selic) is expected to be 5% per annum by the end of this year, 5.25% by the end of 2020, and 7% in 2021 and 2022, in line with last week’s forecasts.
The poll’s respondents expect the US dollar to be worth BRL 3.85 at the end of 2019, up from BRL 3.80 seven days ago. The 2020 forecast moved from BRL 3.81 to BRL 3.82.
Translated by Gabriel Pomerancblum
