Brasília – After 14 weeks going up, the financial market’s expectation regarding the inflation rate has dropped: the Extended Consumer Price Index (Índice de Preços ao Consumidor Amplo – IPCA) estimate for 2015 declined from 8.20% to 8.13%. The expected rate, however, is higher than the top end of the government’s target range, which is 6.5%.
Despite the expected decline in inflation, pessimism still persists regarding growth of the Gross Domestic Product (GDP), i.e. the sum of all goods and services produced in the country. Investors and market analysts believe the economy will shrink by 1.01%. The figures are from the Focus Bulletin, issued weekly by the Central Bank.
The market projects that Brazil will post a US$ 77 billion current account deficit in goods and services transactions with the rest of the world. The trade balance is seen to run a US$ 4.3 billion surplus by the end of the year. Foreign direct investment is expected to reach US$ 56 billion in 2015.
*Translated by Gabriel Pomerancblum
