Brasília – The Brazilian minister of Planning, Budget and Management, Nelson Barbosa, announced a Gross Domestic Product (GDP) growth estimate this Wednesday (27th) different than the one from the 2016 Budget Allocation Bill submitted to Congress in April this year. The minister delivered revised economic projections including 1% GDP growth, whereas the prior estimate was 1.3%.
Another revised projection for 2016 concerns the minimum wage, which had been set at R$ 854 and has been raised by R$ 1 to R$ 855. The current minimum wage in Brazil is R$ 788. The Budget Allocation Bill estimates an official inflation rate, gauged by the Extended Consumer Price Index (IPCA), of 5.6% next year. The benchmark interest rate (Selic) is projected at 11.5% in 2016. The dollar-to-real exchange rate is expected to be R$ 3.30 for US$ 1 next year. In 2015, GDP is expected to be down 1.2%, the IPCA is seen at 8.26% and the Selic rate estimate is 13.25%. The government’s economic team believes the US dollar will be worth R$ 3.22 by year-end.
*Translated by Gabriel Pomerancblum
