Brasília – The 2019 Gross Domestic Product (GDP) growth estimate from Brazilian financial market players eased for the fifth time straight, this time from 2% to 1.98%. The 2020 forecast slid for the second time, from 2.78% to 2.75%. The 2021 and 2022 forecasts remain unchanged at 2.50%.
The figures are from the Focus Bulletin, issued weekly by the Brazilian Central Bank in Brasília and containing the results of a poll covering key economic indicators.
The Extended National Consumer Price Index (IPCA) forecast was kept at 3.89% for this year and 4% in 2020. The 2021 and 2022 estimates remained flat at 3.75%.
The benchmark interest rate is expected to remain at the current all-time low of 6.5% per annum through the end of this year, and then ending 2020 at 7.50% per annum. The Central Bank poll’s respondents see the rate ending both 2020 and 2021 at 8% per annum.
The US dollar forecast is BRL 3.70 at the end of this year, and BRL 3.75 at the end of 2020.
Translated by Gabriel Pomerancblum
