Brasília – The inflation rate estimate measured by the Broad Consumer Price Index (IPCA, in the Portuguese acronym) posted a slight decrease, in the evaluation of financial market analysts and investors. The projection is in the Focus bulletin, released weekly by the Brazilian Central Bank (BC) and changed from 6.47% to 6.46%.
The decrease in inflation rate is accompanied by a decrease in the growth estimate of the Brazilian economy. According to the financial market, the Gross Domestic Product (GDP) should end the year with an increase of 1.24%, while previous projections showed 1.44%. The forecast for the increase in industrial output dropped from 0.96% to 0.51%.
The end-of-year exchange rate expectation remains unchanged, with dollar price estimation at R$ 2.40, and benchmark interest rate (Selic), at 11% per year. The net public sector debt was reduced from 34.85% to 34.7% of the GDP. Government controlled prices, not affected by offer and demand conditions as they are set by contracts or public bodies, remain with 2014’s readjust of 5%.
Current account deficit, one of the main indicators of Brazilian external accounts, also remained unchanged at US$ 80 billion. In this calculation, the trade balance result dropped from US$ 2.25 billion to US$ 2 billion. The foreign direct investment forecast remains at US$ 60 billion.
*Translated by Rodrigo Mendonça
