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Market forecasts 2.3% GDP growth for 2018

GDP

Data from Central Bank's Focus Bulletin shows more favourable scenario for the coming years, with more growth and low inflation
published: Jan 09, 2017 12:00 AM last modified: Jan 09, 2017 03:29 PM
Portal Brasil Economists are optimistic about Industry sector in 2017

Economists are optimistic about Industry sector in 2017

The financial market is projecting a sharp increase in GDP growth for the country next year. Data from the Focus bulletin, released on Monday (9) by the Central Bank shows that analysts have reversed predictions and are now forecasting surpluses for Brazil's GDP: namely 0.5% in 2017 and 2.30% in 2018.

The survey reveals that the expected scenario for the coming years is of high growth and low inflation. In 2016, inflation closed at 6.35%; it is projected to decelerate to 4.81% in 2017, and hit the centre of the target in 2018 at 4.5%.

The latest numbers for inflation in 2016 will be released on Wednesday (11), with the expectation that inflation for the month will have stood at 0.36%. If this is confirmed, the Broad Consumer Price Index (IPCA in the Portuguese acronym) will have ended at 6.35%.

For this year, economists also believe in a return of growth for industry. The expectation is that the sector's output will expand by 1% compared to 2016. The forecast for the basic interest rate (Selic) also predict a retreat. Estimates by analysts are that the rate will drop from 13.75% to 10.25% per annum at the end of 2017.