GDP forecast slid again

Brazilian banks expect the economy to grow by 1% in 2019, the 15th straight downward revision of the estimate.

Agência Brasil

Brasília – Brazil’s economic growth forecast from financial market players is 1%, in the 15th downward shift on end. The number is from the Brazilian Central Bank’s Focus Bulletin, containing the results of a weekly poll of banks. Gross Domestic Product (GDP) is seen going up 1% this year, down from a prior 1.13% forecast.

The 2020 forecast moved down from 2.50 % to 2.23%, and the 2021 and 2022 estimates remained unchanged at 2.50%.

The Extended National Consumer Price Index (IPCA), which tracks inflation in the country, is expected to end the year at 3.89%, down from last week’s 4.03% forecast. The 2020 projection remained at 4%, and the 2021 and 2022 ones were also unchanged at 3.75%.

The benchmark interest rate is expected to remain at 6.50% – an all-time low – at the end of 2019. Forecasts moved from 7.25% to 7% for 2020 and from 8% to 7.50% for 2021. The 2022 forecast was stationary at 7.50% per annum.

The US dollar is seen ending 2019 and 2020 at BRL 3.80.

Translated by Gabriel Pomerancblum

Marcello Casal Jr./Agência Brasil

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