Brasília – Financial institutions’ economic growth projections are steadily declining. For the ninth time in a row, the growth estimate for the Gross Domestic Product (GDP), i.e. the sum of all goods and services produced in the country, has been revised down from 2.34% to 2.31% for this year. The estimate for 2013 is below the Central Bank’s projection, which is 2.7%.
Next year, financial institutions are expecting growth to be slightly higher: 2.8%, the same as last week. The estimates are the result of a survey of the main economic indicators which the Central Bank conducts on a weekly basis.
The industrial output estimate is down from 2.34% to 2.23%, this year, and remains at 3% for 2014. The dollar price estimate has been maintained at R$ 2.20, by the end of this year, and was revised up from R$ 2.22 to R$ 2.30, by the end of 2014.
The benchmark interest rate (Selic) has been maintained at 9.25% per year, by the end of 2013, and was raised from 9.25% to 9.5% per year, by the end of 2014.
On July 10, the Central Bank’s Monetary Policy Committee (Copom) raised the Selic rate for th third time in a row to 8.5% per year. The Selic rate was raised due to rising inflation. Whenever the Copom is aiming to curb a price hike, it raises the benchmark rate.
*Translated by Gabriel Pomerancblum
