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BRASILIA, Aug. 22 (Xinhua) -- Financial analysts in Brazil have raised their predictions for Brazil's GDP growth in 2017 from 1.1 to 1.2 percent, according to the Central Bank's Focus poll published Monday.
This poll, carried out among the country's main financial companies, shows that their confidence is below that of the government, which predicts 1.6 percent growth.
Should these predictions be accurate, Brazil would thus stop the deepest recession in its history.
For 2016, however, analysts continue to predict a contraction of 3.2 percent, after a 3.8 percent downturn in 2015.
In terms of inflation, the Focus report predicts it will remain at 7.31 percent this year, before lowering to 5.12 percent in 2017.
While an improvement, this would still be beyond the government's target of 4.5 percent. For 2016, this result would also be outside the government's upper ceiling of 6.5 percent in 2016.
In terms of exchange rates, institutions expect the real, the country's currency, will remain at 3.3 to 1 U.S. dollars in 2016, and will stand at 3.4-3.5 reais to the U.S. dollar for 2017.
Furthermore, while investor confidence is slowly growing under the new administration of interim President Michel Temer, analysts expect to see the same amount of foreign investment in 2016 and 2017 at 65 billion U.S. dollars apiece.
