Brazil Central bank survey says economy will shrink 2.26% this year and 0.40% next year

Tuesday, September 1st 2015 - 07:08 UTC

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Analysts expect Brazil's economy to contract by 0.40% in 2016, while they were forecasting a contraction of just 0.24% for next year in the prior weekly survey.

Analysts expect Brazil's economy to contract by 2.26% this year, reflecting greater pessimism in the wake of the release of figures last week showing that the country is in a recession, the Central Bank said Monday.

The gross domestic product (GDP) 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.

Until a week ago, analysts expected Brazil's GDP to contract by 2.06%.

The more negative estimates follow the government's release last Friday of a report showing that the GDP contracted 1.9% in the second quarter on top of a decline of 0.70% in the first quarter, meeting the technical definition of a recession.

Economists define a recession as six consecutive months of negative GDP.

Analysts now expect Brazil's economy to contract by 0.40% in 2016, while they were forecasting a contraction of just 0.24% for next year in the prior weekly survey.

Analysts trimmed their inflation outlook for this year slightly from 9.29 percent last week to 9.28 percent in the latest survey. Brazil's benchmark interest rate will hold steady at 14.25% this year, analysts said.

Categories: Economy, Brazil.

Tags: Brazil, Brazil economy, Brazil recession, Brazilean Central Bank, Brazil’s GDP.

Top Comments

Disclaimer & comment rules

Jack Bauer
“Analysts expect Brazil's economy to contract by 2.26% this year, reflecting greater pessimism in the wake of the release of figures last week showing that the country is in a recession, the Central Bank said Monday.”

Terence Hill : I'm sorry I don't have any proof of the above, other than what the analysts have predicted and the non-existence of any denial by the Government.
Sep 01st, 2015 - 04:57 pm 0
ChrisR
Ah! the Central Bank: the place where dreams are made!

Ha, ha, they need to be in their dreams if these figures are to be believed.
Sep 01st, 2015 - 06:21 pm 0
Jack Bauer
ChrisR
d'you think the brainless one will let me get away with the above , without interrogating me ??
Sep 02nd, 2015 - 08:08 pm 0

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