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Economists cut Brazil GDP outlook for 2016, 2017

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Staff writer ▼ | March 22, 2016
Economists reduced their outlook on Brazil's economic performance for this year and next year as the country's economic and political crises deepens.
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LatAm   GDP in Brazil to shrink 3.6%
Brazil's gross domestic product is expected to shrink 3.6% this year, according to a weekly central-bank survey of 100 economists, compared with expectations a week ago of a 3.54% contraction. This marked the ninth-consecutive downward revision.

Last year, Brazil's economy contracted 3.80%, according to the country's statistical bureau, IBGE.

For 2017, economists reduced their view of the country's economy expansion to 0.44% from 0.50%.

Meanwhile, economists reduced their estimate for the inflation rate in 2016, as measured by the consumer-price index, to 7.43% from 7.46%.

According to the central-bank survey, economists kept their outlook for the year-end Selic rate at 14.25% and for 2017 at 12.50%.

They also forecast Brazil to post a $42.40 billion trade surplus this year, up from the $41.20 billion expected in the previous week's survey.