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By Jay Forte, Contributing Reporter

RIO DE JANEIRO, BRAZIL – Financial institutions consulted by the Central Bank (BC) of Brazil reported that the projected growth of the Brazilian economy in 2017 increased from 1.1 percent to 1.2 percent. The estimates are part of research done every week by the BC on key economic indicators, and published each Monday.

President of Brazil's Central Bank, Ilan Goldfajn, Rio de Janeiro, Brazil, Brazil News
President of Brazil’s Central Bank, Ilan Goldfajn, photo by Marcelo Camargo/Agência Brasil.

In 2016, the Central Bank retains the estimated retraction of the economy. The downward projection of the Gross Domestic Product (GDP), the sum of all goods and services produced in the country, remains at negative 3.20 percent for 2016.

The BC projection of the financial institutions for inflation, measured by the national index of the Consumer Price (IPCA) was maintained at 7.31 percent this year and fell from 5.14 percent to 5.12 percent in 2017.

Estimates by the BC are far from the center of the 4.5 percent inflation target. For 2016, the projection also exceeds the upper limit of the target that is 6.5 percent. The target ceiling in 2017 is six percent.

The expectation of financial institutions for the Selic rate stays at 13.75 percent per annum at the end of 2016, and followed by eleven percent per annum at the end of 2017. The projection for the Brazilian real (BRL) currency is R$3.30/US$1 at the end of 2016, decreasing to R$3.50/US$1 – R$3.45/US$1 at the end of 2017.

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