Government forecasts 1.9% GDP shrink in 2016
The 2016 projection for industrial production has also been lowered from a 0.36% growth forecast to a 2.7% decline. (Aquivo Agencia Brasil)
The government forecasts the gross domestic product (GDP) will shrink 1.9% next year, according to its document submitted Monday (Nov. 23) to the Joint Budget Committee of Congress (CMO). The document, sent by the Ministry of Planning, is a revision of the economic parameters that inform the 2016 budget proposal referred to the committee, and the -1.9% forecast updates the previous 0.2% growth outlook reported in the proposal.
The government has also revised its inflation forecast for next year. According to the document sent yesterday to the CMO, the government now expects the cumulative National Broad Consumer Price Index (IPCA) to close out 2016 at 6.47%, instead of the 5.4% previously reported in the budget proposal.
The 2016 projection for industrial production has also been lowered from a 0.36% growth forecast to a 2.7% decline. The outlook for the National Consumer Price Index (INPC), used for raising the minimum wage, rose from 5.2% to 5.52%.
* Data from Agência Câmara was added to this story.
Translated by Mayra Borges
Fonte: Government forecasts 1.9% GDP shrink in 2016
