Brazil Lowers GDP Expectations from 4% to 3.12%

    Brazil’s Gross Domestic Product (GDP), which represents the sum of wealth produced in the country, will continue to grow this year, but according to a Central Bank (BC) poll, at a substantially slower pace than was indicated by official projections made at the start of the year.

    According to the most recent Focus survey, conducted by the BC on Friday, June 10, GDP growth in 2005 will be 3.12%, down from the 3.27% registered in the previous poll.

    Earlier this year, forecasts released by the Brazilian government talked about a 4.00% growth in GDP for the year. For 2006, the forecast continues to be for 3.50% growth.

    Despite the pronounced drop, the prognosis is still higher than the 2.8% announced last week by the Institute of Applied Economic Research (Ipea), linked to the Ministry of Planning, Budget, and Management.

    According to the BC study, released today, the growth prospects for industrial production improved somewhat in relation to last week’s predictions, from 4.08% to 4.14% for this year and 4.35% to 4.50% for next year.

    The forecast for the ratio between net government debt and the GDP was maintained at 51.40% for this year and raised from 50% to 50.50% for 2006.

    The Focus Bulletin predicts a higher surplus in the current account, which includes all commercial and financial transactions with foreign countries.

    According to the hundred financial institutions and market analysts who were interviewed, this year’s surplus should amount to US$ 9.20 billion (as against US$ 9 billion in the previous poll).

    The survey maintained the projection of US$ 35 billion for this year’s trade surplus and US$ 29 billion for next year’s.

    The forecasts for foreign direct investments this year and next also remained unchanged at R$ 15 billion in both cases.

    There were also no alterations in the foreign exchange outlook, with projections for the American dollar to be quoted at R$ 2.67 at the end of this year and R$ 2.85 at the end of 2006.

    The analysts also believe that the government’s annualized overnight benchmark interest rate (Selic), which presently stands at 19.75%, will be gradually reduced to 18% this year and 15.50% by the end of 2006.

    Agência Brasil

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    Ads

    You May Also Like

    Brazilian workers

    Reducing Work to 40 Hours a Week in Brazil Without Lowering Wages Is Smart and Fair

    To transform the unequal and unjust structures of our society was always one of ...

    Greenpeace protests against Bunge in Passo Fundo, Brazil

    Labeling Transgenic Food Is the Law in Brazil. But Nobody Obeys It

    The multinational food giant, Bunge, has 60 days to inform the public in Brazil ...

    Brazilian Sebastií£o Salgado Pans ‘Greediness of Soybean Culture’

    The Brazilian world-renowned photographer Sebastião Salgado was an illustrious guest at the Kuarup (an ...

    Slow-Growing Brazil Is Holding Back LatAm’s Expansion

    Latinamerica is the developing region which will expand less in 2006 – below Asia ...

    Immigrants Role: To Win Friends and Influence Congress

    After debating for several weeks about the touchy subject of immigration reform, the United ...

    Brazilian Federal Police Report Urges Indictment of Lula’s Former Minister

    A Brazilian Federal Police report strongly recommends a former minister and close advisor of ...

    Brazilian products imported in Brazil

    Share of Imports in Brazil Gets Its Biggest Jump Since 2007

    The participation of imported products in Brazil’s consumption rose to 21.8 percent in the ...

    The Show of the Year

    Casa dos Artistas became a fever, with 20 million people watching it daily. The ...

    Made in China

    Brazil-Argentina Common Worry: Made-in-China Products

    According to Brazilian sources, Brazil and Argentina have established a standing consultation round to ...

    Banana Republics No More

    Hasn’t the time come for serious new initiatives to ameliorate past suspicions and foster ...