Brazil’s financial market forecasts 4.81pc drop in GDP in 2020

BRASILIA (XINHUA) – Brazilian financial analysts upgraded their economic growth forecast for 2020, from a five per cent drop in gross domestic product (GDP) to a 4.81 per cent drop, the Central Bank of Brazil said.

They also downgraded their growth projection for 2021, from a 3.47 per cent rise in the GDP to a 3.42 per cent rise.

According to the bank’s weekly survey of leading financial institutions in Brazil, analysts raised their inflation forecast for the end of the year, from 2.65 per cent to 2.99 per cent, and modified next year’s inflation forecast from 3.02 per cent to 3.1 per cent.

The inflation figures fall within the government’s target rate of four per cent in 2020 and 3.75 per cent in 2021, with a 1.5 point margin of tolerance up or down.

Regarding the country’s trade balance, the analysts expect USD58 billion in trade surplus in 2020 and USD55 billion in surplus in 2021.