Brazilian market lowers GDP growth forecast to 1.45 pct for 2019

Source: Xinhua| 2019-05-14 11:27:47|Editor: mingmei
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RIO DE JANEIRO, May 13 (Xinhua) -- Brazil's financial market reduced the economic growth forecast for the year from 1.49 percent to 1.45 percent, Brazil's central bank said on Monday.

The bank's forecast for the Gross Domestic Product (GDP) growth remained at 2.5 percent for 2020 based on interviews with 100 financial market economists.

The new GDP forecast for the current year confirms the difficulties the largest Latin American economy faces in trying to fortify a robust growth after the economic crisis it experienced in 2015 and 2016.

In both 2017 and 2018, the Brazilian economy grew 1.1 percent.

At the end of March, the financial market had forecast a 2-percent growth for 2019, an estimate that has been reduced every week.

In terms of inflation, the financial market maintained its forecast at 4.04 percent for 2019, lower than the bank's goal of 4.25 percent, but still within the margin of tolerance which is between 2.75 and 5.75 percent.

The economists also kept the forecast for the Selic benchmark interest rate unchanged at the current record low of 6.5 percent until the end of the year. But they expect it to rise to 7.5 percent in 2020.

In terms of the foreign exchange market, analysts expect a valuation of 3.75 reals per U.S. dollar for the current year and 3.8 reals per U.S. dollar in 2020.