MercoPress. South Atlantic News Agency

Brazilian financial analysts upgrade growth forecast for 2020

Brazil's economy is expected to contract this year due to the impact of the novel coronavirus pandemic, despite seeing a recovery in recent months.

Brazilian financial analysts slightly upgraded their growth forecast for 2020, from a 4.41% drop in gross domestic product (GDP) to a 4.4% drop, the Central Bank of Brazil reported.

According to the bank's weekly survey of 100 of the country's leading financial groups, analysts downgraded the GDP growth forecast for 2021, from a 3.5% expansion in GDP to 3.46%.

Brazil's economy is expected to contract this year due to the impact of the novel coronavirus pandemic, despite seeing a recovery in recent months.

Analysts raised their inflation forecast for this year, from 4.35% to 4.39%, the ninth consecutive weekly increase, and for next year, modified it from 3.34% to 3.37%.

The benchmark interest rate, which is currently at 2% annually, is expected to increase to 3% next year.

Brazil's expected trade surplus was reduced from 57.63 billion U.S. dollars to 56.15 billion dollars in 2020, and from 56.5 billion dollars to 55.1 billion dollars in 2021.