Brazil's financial market forecasts smaller 4.55 pct drop in 2020 GDP

  • World
  • Tuesday, 24 Nov 2020

BRASILIA, Nov. 23 (Xinhua) -- Brazil's private-sector financial analysts are forecasting a smaller contraction in economic growth in 2020 than previously projected, from a drop of 4.66 percent to 4.55 percent in gross domestic product (GDP), the Central Bank of Brazil said on Monday.

Analysts also upgraded their growth forecast for 2021, from an expansion of 3.31 percent to 3.4 percent in GDP, according to the bank's weekly survey of the country's main financial institutions.

The market raised its inflation forecast, from 3.25 percent to 3.45 percent for the end of this year and from 3.22 percent to 3.4 percent for the end of next year.

Both forecasts fall within the government's target rate of 4 percent inflation in 2020 and 3.75 percent inflation in 2021, with a 1.5 percent margin of tolerance up or down.

Their 2020 forecast for the benchmark interest rate remained unchanged at the current level of 2 percent, but rose from 2.75 percent to 3 percent for 2021.

Regarding the trade balance (balance of exports and imports), analysts expected 57.73 billion U.S. dollars of surplus in 2020 and 55.1 billion U.S. dollars of surplus in 2021.

Foreign direct investment in Brazil is forecast to reach 45 billion U.S. dollars in 2020 and 60 billion U.S. dollars in 2021.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In World

U.S. Conference of Mayors, Wells Fargo grants to advance housing affordability solutions
NYC COVID-19 test positivity rate down to 8.44 pct, new cases up to 4,743: mayor
Kallas becomes Estonia's first female PM, far right out of government
Yemen's Houthis protest against Trump's terrorist label
2nd LD Writethru: Xi says China to ensure Beijing Winter Olympics complete success
Morocco's COVID-19 infections rise to 466,626 with 337 new cases
Trump lawyer Giuliani faces $1.3 billion lawsuit over 'big lie' election fraud claims
German shares close 1.66 pct lower
Majority of over-80s in UK received coronavirus vaccine: health secretary
British stocks down 0.84 pct Monday

Stories You'll Enjoy