Brazil cuts predicted GDP to 3.1%

The Brazilian government lowered its projection for the gross domestic product in 2016. In May, a decline had been estimated at 3.8%, which was revised to 3.1%, according to figures from the economic staff.

The estimates can be found in the Assessment Report for Revenues and Expenditures (Relatório de Avaliação de Receitas e Despesas in the original Portuguese) for the third two-month period in the yar, released Monday (Jul. 22) by the Ministry of Planning, Development, and Management.

The report is published every two months and includes updates on the government's estimated revenues, expenditures, and targets, as well as revised economic indicators. In May, the government published an extemporaneous issue after the fiscal target was approved at $51.9 billion in 2016.

Despite feeling more optimistic about the GDP, the government rose the yearly estimate for the inflation from 7% to 7.2%. The government, however, predicts a reduction up to the end of the year.

The document, which was submitted to Congress, serves as basis for monitoring the execution of the Budget.

Translated by Fabrício Ferreira