Economists trim Brazil 2019 growth forecasts again, but signs of stability emerge: survey

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Economists trim Brazil 2019 growth forecasts again, but signs of stability emerge: survey
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Economists trimmed their 2019 Brazilian economic growth forecasts for a 19th con...

BRASILIA - Economists trimmed their 2019 Brazilian economic growth forecasts for a 19th consecutive week, a central bank survey showed on Monday, but no changes in the outlook for other major macroeconomic variables suggested the worst may be over.

While this year’s average growth forecast was trimmed to a new low of 0.82% from 0.85% the week before, the estimates for inflation, the exchange rate and official interest rates for this year out to 2022 were left unchanged. Having contracted 0.2% in the first quarter of the year, the economy likely stagnated, possibly even slipping into recession, in the second quarter, recent economic indicators suggested.

On average, economists see inflation ending this year at 3.80%, the dollar at 3.80 reais BRBY, and the central bank’s benchmark Selic rate at 5.50%, all unchanged from the previous FOCUS survey.

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