Brasília – The Brazilian economy should shrink 3.3% this year and 2.6% in 2016, according to projections from the National Federation of Industry (CNI). It believes that shrinkage of the Gross Domestic Product (GDP) will be coupled with two-digit inflation this year, at 10.5%. The expectation for next year is 6.8%. Inflation in Brazil is gauged by the Extended Consumer Price Index (IPCA).
Industry activity is expected to slow down by 6.4% this year and 4.5% in 2016. Consumption by families is expected to drop 3.9% in 2015 and 3.3% next year. Investments (Gross Fixed Capital Formation) should reach 15.5% this year and 12.3% in 2016. The CNI also forecasts that unemployment will be 8.3% this year and 11% in the next one.
The average price of the US dollar is expected to be BRL 3.33 this year and BRL 4.20 in 2016. CNI projections also show a USD 18 billion trade surplus this year and a USD 37 billion surplus in 2016.
*Translated by Gabriel Pomerancblum
