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Brazilian economy remains in recession; Central bank survey indicates 0.27% growth this year

Tuesday, October 28th 2014 - 15:27 UTC
Full article 5 comments
The analysts also left their 2015 GDP growth estimate of 1% unchanged, the Central Bank said. The analysts also left their 2015 GDP growth estimate of 1% unchanged, the Central Bank said.

Private sector analysts are maintaining their 2014 growth forecast for Brazil's economy at 0.27%, the Central Bank said on Monday. GDP estimate was included in the Focus review, a weekly Central Bank survey of analysts from about 100 private financial institutions on the state of the national economy.

 The analysts also left their 2015 GDP growth estimate of 1% unchanged, the Central Bank said. Analysts surveyed for the Focus review expect the country to end 2014 with an inflation rate of 6.45% and for prices to rise 6.3% in 2015.

The Dilma Rousseff administration has an inflation target of 4.5% for this year, with a 2 percentage point band that allows a top end rate of 6.5%.

The survey was done last Friday, two days before President Dilma Rousseff won re-election.

Brazil's economy, according to government figures, contracted by 0.60% in the April-June period, marking the second consecutive quarter of negative GDP growth and meeting the technical definition of a recession.

However the government expects the economy to grow 0.90% this year, while the Central Bank sees GDP expanding at a 0.60%. Brazil's economy grew just 1% in 2012 and expanded 2.3% last year.

Categories: Economy, Brazil.

Top Comments

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  • ChrisR

    Now who to believe?

    The privte sector who work for a living who say 0.27%, or the liars in government who say 0.9%.

    With inflation at 6.5% it means all the idiots who voted for DumbAss will get what they deserve.

    Oct 29th, 2014 - 12:56 pm 0
  • Jack Bauer

    @1 ChrisR
    The answer is obvious : the private sector . The government just lies. A curious fact to do with this, occurred about 2 weeks before the 2nd round : Aécio requested the TSE (Electoral High Court) to oblige the government to release the official figures regarding the economy's performance during August and September ; the judge - appointed by whom ? Dilma, of course - said he would not order the release of such information, and allowed the government to withhold it, as “it might be used to criticize the government's performance, which could influence the outcome of the election” much for transparency...
    Therefore, whatever the government tells us should be construed as a lie.
    But as far as the GDP is concerned, there is still time for it to become negative.

    Oct 29th, 2014 - 08:12 pm 0
  • Brasileiro

    Jack Bosta just talks shit. Jack Bosta you think that GDP will fall, the dollar will rise, Bovespa will plummet, just because you will close your dump or because Rousseff has not yet created “Meu Banho, Minha Vida” to Sao Paulo?

    Tucanalhas have no way!

    Oct 29th, 2014 - 10:18 pm 0
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