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Brazil's economy to shrink 4.11 pct in 2020: economists

Xinhua News,BRASILIA
2020-05-12 03:58

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BRASILIA, May 11 (Xinhua) -- Brazilian financial analysts downgraded their economic forecast for the year from a 3.76-percent contraction in gross domestic product (GDP) to 4.11 percent, the Central Bank of Brazil said on Monday.

The adjustment marked the 13th week in a row that economists had downgraded their projections for economic growth, according to the bank's weekly Focus poll of leading financial groups.

Their growth forecast for 2021 remained steady at 3.2 percent.

The Brazilian real is expected to trade at 5 to the U.S. dollar by year's end, as previously forecast. But 2021's projected exchange rate was modified from 4.75 to 4.83 reals to the U.S. dollar.

Brazil's trade balance will see a surplus of 42.5 billion U.S. dollars this year and 42 billion dollars the next, analysts estimated, with foreign direct investment reaching 70.75 billion dollars in 2020 and 79 billion dollars in 2021.
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