Brasília – The Gross Domestic Product (GDP) growth forecast from financial institutions polled by the Brazilian Central Bank moved down from 2.30% to 2.28%. The projection was released in the Focus Bulletin, containing the results of a weekly poll of banks covering key economic indicators.
The 2020 GDP forecast climbed from 2.70% to 2.80%. In both 2021 and 2022, Brazil’s economy is expected to show 2.50% growth. Respondents believe the US dollar will be selling for BRL 3.70 by the end of this year and BRL 3.75 in late 2020.
The Extended National Consumer Price Index (IPCA), which gauges inflation in the country, is seen ending this year at 3.87%, up from 3.85% as of last week. Forecasts for the next few years remained unchanged at 4% in 2020 and 3.75% in 2021 and 2022.
Selic, the benchmark interest rate, is expected to remain at the current 6.5% – an all-time low – through the end of 2019, before going up to 8% per annum in 2020 and remaining so in 2021 and 2022.
Translated by Gabriel Pomerancblum
