GDP forecast from banks worsens

Brazilian financial institutions see the economy growing by 0.82% in 2019, down from last week’s 0.85% estimate.

Agência Brasil
pauta@ebc.com.br

Brasília – Economic growth estimates from Brazilian financial market players keep sliding. The Focus Bulletin, containing results of a weekly Central Bank poll, shows that Gross Domestic Product (GDP) is expected to grow by 0.82% this year, down from last week’s 0.85% forecast. The estimate is now down for the 19th straight week.

The economy is seen growing by 2.20% in 2020, the same as last week, and 2021 and 2022 forecasts remain at 2.50%.

Estimates regarding the Extended National Consumer Price Index (IPCA) – the official measure of inflation in Brazil – remain at 3.80% for this year, and 3.91% in 2020. The government’s 2020 inflation target is 4%, with 1.5 leeway up and down.

Central Bank poll respondents see the benchmark interest rate, known as Selic, ending this year at 5.50% per annum, the same as last week. The current rate is 6.50%. The Selic is expected to end 2020 at 6%, and to climb to 7.5% per annum at the end of both 2021 and 2022.

Translated by Gabriel Pomerancblum

Press Release

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