Brazil to see 4.4 pct drop in GDP, say analysts

Source: Xinhua| 2020-12-22 04:28:56|Editor: huaxia

RIO DE JANEIRO, Dec. 21 (Xinhua) -- Brazilian financial analysts slightly upgraded their growth forecast for 2020, from a 4.41 percent drop in gross domestic product (GDP) to a 4.4 percent drop, the Central Bank of Brazil said Monday.

According to the bank's weekly survey of 100 of the country's leading financial groups, analysts downgraded the GDP growth forecast for 2021, from a 3.5 percent expansion in GDP to 3.46 percent.

Brazil's economy is expected to contract this year due to the impact of the novel coronavirus pandemic, despite seeing a recovery in recent months.

Analysts raised their inflation forecast for this year, from 4.35 percent to 4.39 percent, the ninth consecutive weekly increase, and for next year, modified it from 3.34 percent to 3.37 percent.

The benchmark interest rate, which is currently at 2 percent annually, is expected to increase to 3 percent next year.

Brazil's expected trade surplus was reduced from 57.63 billion U.S. dollars to 56.15 billion dollars in 2020, and from 56.5 billion dollars to 55.1 billion dollars in 2021. Enditem