Brasília – Financial institutions polled by the Brazilian Central Bank have revised their economic contraction forecast for the second straight week. Expected contraction of the Gross Domestic Product (GDP) – the sum of all goods and services produced in the country – moved from 3.24% to 3.23%.
The growth forecast for 2017 remains at 1.1% for three consecutive weeks. The numbers are from the Focus Bulletin, a weekly Central Bank poll covering major economic indicators issued on Mondays.
Banks’ forecast for inflation, which is measured in the Extended National Consumer Price Index (IPCA), changed from 7.21% to 7.20% for this year and from 5.20% to 5.14% for 2017. The benchmark interest rate, aka the Selic rate, is seen at 13.50% per annum, 13.50% at the end of 2016 and 11% at the end of 2017.
The year-end US dollar price forecast remains at BRL 3.30 for 2016 and BRL 3.50 for 2017.
*Translated by Gabriel Pomerancblum
