Brazil’s GDP shrank 6.25 percent by 2020: economists | Instant News


General view of the Central Bank of Brazil during the coronavirus outbreak (COVID-19) in downtown Brasilia, Brazil, March 20, 2020. [Photo/Agencies]

BRAZIL – Brazilian financial analysts lowered their economic growth forecast for 2020 from -5.89 percent to -6.25 percent, marking the 16th consecutive adjustment, the Brazilian Central Bank said on Monday.

According to the bank’s weekly poll of economists at leading Brazilian financial institutions, analysts maintain their growth projection for 2021 at 3.5 percent.

Inflation forecasts for this year declined slightly from 1.57 to 1.55 percent, and from 3.14 to 3.1 percent for next year. Both are included in the government’s official inflation target of 4 percent for 2020 and 3.75 percent for 2021, with variations of 1.5 percent up or down.

The projected interest rate for Brazil remains stable at 2.25 percent for this year, but analysts raised their estimates for next year from 3.29 to 3.38 percent.

Latin America’s largest economy is expected to see a trade surplus of 45.5 billion US dollars in 2020, and 45 billion dollars in 2021.

Foreign direct investment is estimated to reach 64 billion dollars this year, and the next 75 billion dollars.

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