São Paulo – Financial institutions operating in Brazil have revised up their inflation forecast for this year again. As per the Focus Bulletin issued this Monday (7th) by the Brazilian Central, official inflation should be up 7.59% by the end of 2016. Last week’s forecast had been of a 7.57% increase.
Gross Domestic Product (GDP), in turn, is expected to shrink 3.5%, up from last week’s 3.45% forecast. The Focus Bulletin is a weekly poll of financial institutions covering the main economic indicators.
The benchmark interest rate, aka the Selic rate, is expected to be 14.25% by the end of the year, the same rate as last week’s. Foreign direct investment flows are forecasted at USD 55 billion and the country is expected to post a USD 39.85 billion trade surplus. As of last week, a USD 40 billion was expected.
*Translated by Gabriel Pomerancblum
