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Montevideo, November 14th 2018 - 21:49 UTC

Brazil's Central bank Focus weekly negative report

Tuesday, December 15th 2015 - 08:32 UTC
Full article 22 comments
The political situation and the plunging of an commodities' exports dependent economy has turned Brazil and president Rousseff's prospects into turmoil  The political situation and the plunging of an commodities' exports dependent economy has turned Brazil and president Rousseff's prospects into turmoil

Analysts expect Brazil's economy to contract by 3.62% this year, with inflation hitting 10.61%, the Central Bank said Monday. GDP and inflation estimates come from the Boletin Focus, a weekly Central Bank survey of analysts from about 100 private financial institutions on the state of the national economy.

 The government started using the survey in preparing its own forecasts this year.

Last week, analysts expected Brazil's economy to contract by 3.50% and the inflation rate to come in at 10.44%. In 2016, analysts now expect Latin America's largest economy to contract by 2.67%, with the inflation rate falling to 6.80%.

If the forecasts turn out to be accurate, Brazil will go through two consecutive years of negative GDP growth for the first time since 1948. Brazil is in a recession, with GDP contracting for two consecutive quarters.

Brazil's economy contracted by 2.1% in the first half of this year.

Economic growth has also been hampered by the spending cuts implemented by President Dilma Rousseff's administration to reduce the budget deficit and control inflation.

Categories: Economy, Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • Skip

    No boom lasts forever.

    The trick is to know when it's starting to wind down before changing. Not wait for the bust and then dither about what to do.

    Dec 15th, 2015 - 08:57 am 0
  • Brasileiro

    Lower interest rates to 4% per annum, stimulating growth through public policies, sell the dollar reserves and settle domestic debt (as there is no public external debt), use public surplus of 400 billion yuan to boost currency swap with the central banks of BRICS.

    And finally sign trade and military agreement with the BRICS.

    https://www.youtube.com/watch?v=gaYtzmlhxLA

    Dec 15th, 2015 - 08:58 am 0
  • Skip

    Thankfully Australia's recent free trade agreement with China didn't involve a military takeover.

    If that is what Brazil desires then enjoy.

    Dec 15th, 2015 - 11:20 am 0
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