Brasília – Financial market analysts have revised down the economic growth forecast for this year for the fourth time in a row. The estimated Gross Domestic Product (GDP) growth rate has been lowered from 2.99% to 2.727%. The forecast for 2013 has been maintained at 4.5%.
Last Friday (1st), the Brazilian Institute of Geography and Statistics (IBGE) informed that the GDP was up 0.2% in the first quarter this year compared with the preceding quarter, and reached 1.03 trillion reals (US$ 504.5 billion).
Due to the slowdown in economic growth, the Central Bank has been lowering the benchmark interest rate, known as Selic, to foster economic activity. Last Wednesday (30th), the Central Bank’s Monetary Policy Committee (Copom) announced the fourth benchmark rate cut this year. The rate was lowered by 0.5 percentage point, down to 8.5%.
In late 2012, analysts are expecting the Selic rate to be at 8%. By the end of 2013, the forecast is 9.38%, as against 9.5% according to the last estimate.
*Translated by Gabriel Pomerancblum
