Analysts expect Brazil's economy to contract by 1.76% this year, marking its worst performance since 1990, with the inflation rate hitting 9.23%, the Central Bank said on Monday.
The latest forecast is more pessimistic than the one released last week, when analysts said they expected the gross domestic product (GDP) to contract by 1.70% and inflation to come in at 9.15%.
The 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.
Analysts' pessimism was fueled by the government's announcement last week that it would not meet the 1.1% primary fiscal surplus target it set for this year and that the goal was now to cut public spending by the equivalent of 0.15% of GDP.
The government of President Dilma Rousseff plans to slash the budget by 8.6 billion reais ($2.66 billion), a move that will further slow economic activity and deepen the contraction.
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In other news her political party had another record year of contributions from unknown sources.Jul 28th, 2015 - 10:28 am 0
For those who can understand. Mammy. Mammy. I'll walk a million miles for one of your smiles......Jul 28th, 2015 - 12:33 pm 0
Until they stop the free $ to slumdweller's program they won't get their inflation in control.Jul 28th, 2015 - 12:39 pm 0
The balancing act is getting precarious.
I also heard their one person away from indicting Lula...