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Brazil's 2019 growth forecast revised lower again to 1.24 percent

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Christian Fernsby ▼ | May 21, 2019
Brazil's economic growth forecast for 2019 was lowered from 1.45 percent to 1.24 percent, according to the Focus Bulletin released by the Central Bank of Brazil.
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According to the weekly report issued every Monday by the central bank, after consulting 100 financial market economists, this is the 12th consecutive drop in growth forecasts for Latin America's largest economy.

The official economic growth result for Brazil's first quarter gross domestic product (GDP) will be released on May 30 by the Brazilian Institute of Geography and Statistics (IBGE).

Regarding the exchange market, analysts forecast that the U.S. dollar will be at 3.8 reals at the end of the year, after a forecast of 3.75 reals to the U.S. dollar last week.

In terms of inflation, the economists increased their forecast from 4.04 percent to 4.07 percent. The official goal is 4.25 percent with a margin of tolerance of 1.5 percentage points in either direction.

The Focus Bulletin kept the Selic benchmark interest rate at 6.5 percent this week.

The forecast for foreign direct investment (FDI) was lowered from 83.29 billion dollars to 82 billion dollars for the current year, while the forecast for the trade balance with surplus increased from 50 billion dollars to 50.5 billion U.S. dollars in 2019.