MercoPress. South Atlantic News Agency

Brazil's GDP expected to contract 2.85% this year, says central bank survey

Forecast marked the 12th-consecutive downward revision in the weekly survey. For 2016 economists maintained their view for a contraction of 1%.

Economists again cut their outlook for Brazil's economic performance for this year, as consumer and business confidence continue at historic low levels. Brazil's GDP is expected to contract 2.85% this year, according to a weekly central-bank survey of 100 economists, compared with expectations last week for a contraction of 2.80%.

 The forecast marked the 12th-consecutive downward revision in the weekly survey of economists.

For the next year, economists maintained their view for a contraction of 1%.

In the meantime, the economists surveyed increased their estimate for inflation in 2015, as measured by the consumer-price index, to 9.53% from 9.46%.

For next year, they increased their inflation estimate to 5.94% from 5.87%.

Respondents maintained their outlook for the benchmark Selic interest rate at the end of 2015 at 14.25%, and for 2016 at 12.50%. The rate is currently at 14.25%.

The economists surveyed lifted their forecast for 2015's trade balance to a $12 billion surplus from $11 billion.