Brasília – The Brazilian economy should shrink 2.85% this year, according to estimation of financial institutions surveyed by the Brazilian Central Bank (BC). This was the 12th straight time this estimation points to worse data for the decline of the Gross Domestic Product (GDP), the sum of all services and goods produced by the country. Last week, this estimation was of 2.8%. Next year, the retraction should be lower: 1%, the same estimation surveyed last week.
By the assessment of the financial market, industrial production should experience a fall of 6.50% this year. In last week’s estimation it was of 6.65%. For 2016, the estimation for a retraction went from 0.60% to 0.29%.
The estimation for the price of the dollar at the end of the year reached R$ 4 against the R$ 3.95 forecast of last week. For the end of 2016, estimation for the dollar price is also of R$ 4. Inflation forecasts also worsened. The estimation of the financial market for the Extended National Consumer Price Index (IPCA) increased for the third straight time, going from 9.46% to 9.53% this year. For 2016, the estimation went from 5.87% to 5.94%.
*Translated by Sérgio Kakitani
