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Analysts Revise Brazil’s GDP Growth 14th Week in a Row, to Over 7%

Brazilian financial analysts have revised their economic growth projection for this year upwards for the 14th week running. Experts surveyed by the Brazilian Central Bank believe that the rate of growth of the Gross Domestic Product (GDP), i.e. the sum of all goods and services produced in the country, has increased from 6.99% to 7.06%.

The expected growth rate for 2011 was maintained at 4.5%. The information was culled from the Focus bulletin, a weekly publication containing financial analysts’ projections of the main economic indicators. Regarding industrial output, the projections have been maintained at 11.32% this year and 5% in 2011.

The estimate of net public debt-to-GDP ratio has gone from 41.20% to 41%, this year, and from 39.85% to 39.70%, in 2011. The dollar-to-real ratio was maintained at 1.80 real for one dollar this year. For 2011, the estimate has gone from 1.86 real to 1.89 real for one dollar.

The trade surplus forecast (positive result for exports minus imports) for this year was revised upwards from US$ 15 billion to US$ 15.10 billion. Next year, analysts are expecting a trade surplus of US$ 6 billion, as against a previous projection of US$ 6.23 billion.

Analysts have revised their estimate of deficit on current account transactions (goods and services purchase and sale transactions between Brazil and foreign countries) for this year from US$ 48.20 billion to US$ 47.57 billion. For 2011, the projection has been revised upwards from US$ 57.40 billion to US$ 57.99 billion.

The estimated foreign direct investment (funds allocated to the country’s productive sector) dropped from US$ 36 billion to US$ 35 billion in 2010, and remained at US$ 40 billion in 2011.

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