Economists cut Brazil growth forecasts

Monday, June 19, 2017

Local economists once again cut their outlook for Brazil's GDP in 2017 and next year as political turmoil ​persists.

The economic growth forecast for this year was reduced to 0.40% from 0.41%, according to a weekly central bank survey of 100 economists. It marked the second consecutive outlook reduction for this year.

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The economists see GDP expanding 2.20% in 2018 compared to their forecast of 2.30% last week, marking the fourth consecutive reduction.

The year-end inflation forecast for 2017 was lowered to 3.64% from 3.71%, and for 2018 it was reduced to 4.33% from 4.37%. The central bank's inflation target for this year is 4.50%.

The economists left their 2017 and 2018 predictions for the Selic benchmark interest rate unchanged at 8.50%.