Financial market projects lower inflation and higher growth for 2017 and 2018

Financial market projects lower inflation and higher growth for 2017 and 2018

Chamber Articles Category: Economic News Post Date: 09/12/17 Source: BrazilGovNews By: BrazilGovNews
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Financial institution economists continue to present positive scenarios for the Brazilian economy as the country resumes economic activity. The Focus Bulletin published on Monday (11) reveals that economists expect stronger economic growth in 2017 and 2018, as well as further drops in inflation and interest rates.

According to the Central Bank report, which includes forecasts by approximately 100 analysts, Gross Domestic Product (GDP) growth projections have risen from 0.50% to 0.60%. In 2018, expected economic growth has been adjusted from 2% to 2.10%.

GDP growth projections have been reviewed following economic improvements observed in the second quarter of this year. In Q2, the economy grew 0.2% above expectations as a result of an unexpected rise in household consumption.

In view of this, economists have reduced their estimated Broad Consumer Price Index (IPCA – Brazil's official inflation index) from 3.38% to 3.14% this year. In 2018, IPCA projections have fallen from 4.18% to 4.15%. Read Full Article