Brasília – Brazilian financial market players expect Brazil’s economy to see 0.5% growth in 2017, following news that Gross Domestic Product (GDP) had increased by 1% in Q1. The forecast is from the Focus Bulletin, a poll of banks conducted by the Brazilian Central Bank and released every Monday.
Last week’s growth forecast had been 0.49%, a number driven by the political crisis. A week before that, the expected rate had been 0.5%.
According to the Focus Bulletin, GDP growth forecast for 2018 dropped from 2.48% to 2.40%. The estimate regarding the Extended National Consumer Price Index (IPCA), the government’s measure of inflation, moved from 3.95% to 3.9%. The benchmark interest rate, aka Selic, is seen ending 2017 and 2018 at 8.5% per annum – the current rate is 10.25% per annum.
*Translated by Gabriel Pomerancblum
