Analysts expect Brazil's economy to contract by 3.15% this year and 2.01% in 2016, the Central Bank reported. The gross domestic product (GDP) estimate comes 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 said they expected Brazil's economy to contract by 3.10% this year and 1.91% in 2016. Brazil's economy is headed for its worst economic performance since 1990, when it contracted by 4.35%.
Analysts revised their inflation expectations upward from 10.04% to 10.33% for this year and from 6.50% to 6.64% for 2016, with both figures well above the official targets.
Brazil is in a recession, with GDP contracting for two consecutive quarters. Its 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 and ongoing battle with congress to have legislation passed. Many lawmakers from the ruling coalition refuse to support higher taxes and reduced lending, and putting the brakes on consumer spending and investment.