Brazil 2019 growth forecasts cut to new low of just 1.0%Christian Fernsby ▼ |
LatAm Reflecting the deteriorating outlook for Latin America’s largest economy
Brazil’s economy is expected to grow by just 1.0% this year, according to a central bank survey.
Not only that, economists cut their 2020 GDP outlook to a new low of 2.23% from 2.50%, and their prediction of where the central bank’s benchmark Selic rate will be at the end of next year to 7.00% from 7.25% the week before.
That is the first time the FOCUS survey’s average 2020 GDP forecast has slipped below 2.50%, it was 2.80% in March, and marks an aggressive reduction in Selic forecasts for next year of 50 basis points in less than a month.
The average forecast from 115 respondents also showed that inflation is expected to end the year at 3.89%. ■
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