Brasília – Investors and financial market analysts have reviewed down the forecasted growth for the economy of Brazil in 2012, below the 2.7% recorded last year. According to the Focus bulletin, disclosed every week by the Central Bank of Brazil, the new projection is for Gross Domestic Product (GDP) growth of 2.3%, against the 2.53% forecasted last week. This is the sixth consecutive reduction in the estimate.
The market also believes in the possibility of the benchmark interest rate (Selic) dropping to 7.5% in late 2012, as against 8% in the previous bulletin. The rate is 1 percentage point below that established by the Monetary Policy Committee (Copom) late last month (8.5%).
The projection for the current account deficit, one of the country’s main foreign currency indices, had a turn to the worse, to US$ 66 billion. The perspective for the trade balance surplus remains at US$ 20 billion and the foreign direct investment forecast at US$ 55.10 billion.
*Translated by Mark Ament
