Brasília – Finance market projections for growth of the Gross Domestic Product (GDP) of Brazil this year have been maintained at 1.9%, according to figures disclosed by the Central Bank of Brazil. For 2013 there has been a reduction from 4.1% to 4.05%. The estimate for industrial production this year has dropped for nine weeks running. The projected retraction expanded from 0.04% to 0.44%. For 2013, the expectation is for recovery, with expansion of 4.3%.
Projections by analysts at financial institutions for inflation as measured by the Broad Consumer Price Index (IPCA), in 2012, have climbed for the third week running. This time it climbed from 4.92% to 4.98%. For next year, the estimate for the IPCA has been maintained at 5.5%, a result repeated for five weeks running.
The forecasts are above the 4.5% target, but below the maximum limit of 6.5%. It is up to the Central Bank to maintain inflation under control. One of the instruments the institution uses to control inflation and the level of economic activity is the benchmark interest rate, Selic.
*Translated by Mark Ament
