GDP Growth Projection in Brazil Declines to One Percent

By Contributing Reporter

RIO DE JANEIRO, BRAZIL – Economists of financial institutions consulted by the Central Bank have worsened, for the 15th consecutive week, the projection for GDP (Gross Domestic Product) growth in 2019.

The prediction for inflation at the end of the year was also revised downwards. The expectations for the dollar rate and the basic interest rate (Selic) this year, were maintained.

See this week’s Focus Bulletin projections for late 2019, released by the Central Bank:

• GDP: fell from 1.13% to 1%
• Inflation: fell from 4.03% to 3.89%
• Dollar: remained at R$3.80
• Interest rate: remained at 6.5% per year

The projection for economic growth next year was reduced from 2.5 percent to 2.23 percent, and the Selic rate fell from 7.25 percent to 7 percent.

Inflation forecasts (4 percent) and for the dollar (R$ 3.80) at the end of 2020 remained unchanged.