Brazil adjusts GDP forecasts for 2016, 2017

16:49 | 20/09/2016 Global Economy

Brazilian financial analysts have updated inflation and economic growth forecasts for 2016 and 2017 with economic measures underway, Brazilian government website Portal Brasil said.

Brazil adjusts GDP forecasts for 2016, 2017

Brazil's economy has gradually suffered a bigger contraction - Photo: reuters

The news came after the Central Bank of Brazil released its weekly "Focus" survey of financial analysts, who adjusted the projected annual inflation rate from 7.36 percent to 7.34 percent.

The rate for 2017 was maintained at 5.12 percent.

Still, both figures are higher than the government's target rate of 4.5 percent.

The projected drop in gross domestic product (GDP) was also adjusted, from 3.18 percent to 3.15 percent for 2016, with the growth forecast for 2017 upgraded from 1.3 percent to 1.36 percent.

Brazil's benchmark interest rate, currently at 14.25 percent annually, is expected to inch down to 13.75 percent by the end of 2016 and drop to 11 percent by the end of 2017.

Brazil's trade balance should register a 50-billion-U.S.-dollar surplus in 2016, and a surplus of 47.3 billion dollars in 2017.

The markets expect Brazil to attract some 65 billion U.S. dollars in foreign direct investment, both this year and next./.

 

Source: Xinhua

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