Brazil GDP growth forecast halved
For the third quarter in a row, the economic staff has reduced the official estimate for the growth of the Brazilian economy this year. According to a report released every two months by the Ministry of Planning, the increase in the country's gross domestic product (GDP) dropped from 1.8% to 0.9%.
The forecast for the inflation, in turn, was kept at 6.2%, and, in spite of the high value of the dollar, the report predicts the average exchange rate will close out 2014 at R$ 2.29, with no difference from the previous report.
Although the study was published by the Ministry of Planning, the predictions were made by the Secretariat for Economic Policy of the Finance Ministry. The parameters are used to foresee the government's revenues and expenses in the coming months.
In spite of the reduced forecast, the official projections for the Brazilian economy are still more optimistic than those for the stock market. According to the latest Focus report—a survey with financial institutions released on a weekly basis by the Central Bank—market observers believe the GDP will grow a mere 0.3% in 2014, and that the official inflation rate will close out the year at 5.3%.
Translated by Fabrício Ferreira
Fonte: Brazil GDP growth forecast halved
