Banks reduce forecast for Brazilian GDP growth

Date

4/28/2019 3:17:40 AM

(MENAFN- Brazil-Arab News Agency (ANBA)) Agência Brasil

Brasília – The projection by financial institutions for the economic growth this year has decreased slightly. The estimate for the increase of the Brazilian Gross Domestic Product (GDP) was adjusted from 2.50% to 2.48%. For 2020, the estimate for the GDP growth increased from 2.50% to 2.58%. In 2021 and 2022, the expectation remains at 2.50% for the GDP growth.

The projections are by the Focus Readout, the Central bank weekly publication, with estimates by financial institutions for the main economic indicators. The forecast for the Extended Consumer Price Index (IPCA, acronym in Portuguese) remained at 3.87% this year. By 2020, the projection is that IPCA remains at 4%. For 2021 and 2022, there was also no change in the estimate: 3.75%

For the financial market, SELIC – the basic interest rate – should remain at its historic low of 6.5% per year until the end of 2019. For the end of 2020, the estimate is 8% per year, so it is for 2021 and 2022.

The forecast by the financial market for the dollar rate exchange remains at BRL 3.70 by the end of this year and BRL 3.75 by the end of 2020.

Translated by Guilherme Miranda

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