Brasília – Financial analysts and investors estimate that Brazil’s economy will contract by 2.26% this year, as per the Focus Bulletin, the weekly poll conducted by the Central Bank and released this Monday (31st). Last week’s forecast was of a 2.06% drop in the Gross Domestic Product (GDP).
Last Friday (28th), the Brazilian Institute of Geography and Statistics (IBGE) issued its report on quarter two GDP performance. There was a 1.9% decline over the first quarter of the year.
The Focus Bulletin shows an expected 5.57% drop in industrial production. Inflation is believed to reach 9.28%, against 9.29% according to last week’s projections. Government-administered prices are expected to be up 15.20%.
The net public sector debt-to-GDP ratio forecast was notched up from 36.15% last week to 36.20% on this one. The benchmark interest rate estimate has been kept at 14.25%. By the end of the year, the US dollar is expected to be worth R$ 3.50.
Regarding the country’s external accounts, the poll shows an expected current account deficit of US$ 76.5 billion. The trade surplus forecast is US$ 8 billion, with foreign direct investment at US$ 65 billion.
*With information from the ANBA Newsroom. Translated by Gabriel Pomerancblum
