São Paulo – For the fifth straight week, the Focus bulletin, issued this Monday (02) by the Brazilian Central Bank, shows high inflation and low growth forecasts for Brazil’s economy this year. The outcome of a weekly poll of financial institutions conducted by the monetary authority, the Focus bulletin says inflation should be at 7.01% by the end of this year, and the Gross Domestic Product (GDP) should be up 0.03%.
Last week, the forecasts had been 6.99% for inflation and 0.13% for economic growth. The organizations polled believe inflation will exceed the top end of the government’s target range, which allows for two percentage points up or down from the midpoint set at 4.5%.
Forecasts have also changed for other indicators. The trade surplus forecast has gone up from US$ 4.5 billion to US$ 5 billion, same as in early January. Brazil is expected to see US$ 59.2 billion in foreign direct investment inflows. The forecast from last week was US$ 60 billion.
The exchange rate forecast has been kept at R$ 2.80 for US$ 1.00, and the forecast regarding the benchmark interest rate, aka Selic, has stayed at 12.5% by the end of the year.
*Translated by Gabriel Pomerancblum
