Brasília – Economic growth projections from Brazilian financial market players keep sliding. The 2019 Gross Domestic Product (GDP) growth forecast eased for the 11th week back-to-back, from 1.49% to 1.45%. The 2020, 2021 and 2022 forecasts remained flat at 2.50%.
The figures are from the Brazilian Central Bank’s Focus Bulletin, a weekly report containing the results of a poll of banks regarding key economic indicators.
Inflation as per the Extended National Consumer Price Index (IPCA) is seen ending the year at 4.04%, the same as in last week’s poll. The 2020 forecast remains at 4%, and the 2021 and 2022 forecasts also remained unchanged at 3.75%.
Respondents of the poll expect the benchmark interest rate (known as the Selic) to remain at its all-time 6.5% low until the end of the year. The rate is seen ending 2020 at 7.50% per annum, and ending both 2021 and 2022 at 8% per annum.
The US dollar is seen ending this year at BRL 3.75, and the next one at BRL 3.80.
Translated by Gabriel Pomerancblum
