BRASILIA, Aug. 24 (Xinhua) -- Brazilian financial analysts reduced their forecast of a fall in gross domestic product (GDP) in 2020, adjusting it from a 5.52 percent drop to a 5.46 percent drop, the Central Bank of Brazil said on Monday.
The forecast has gradually improved since analysts predicted a 6.54 percent contraction for the year in June.
According to the bank's survey of leading financial institutions in the country, the economic growth forecast for 2021 remained steady at 3.5 percent.
Regarding inflation, analysts raised their estimate from 1.67 percent to 1.71 percent for the end of the year and kept it at 3 percent for next year.
The inflation forecasts fall within the government's target rate of 4 percent in 2020 and 3.75 percent in 2021, with a 1.5 percent margin of error up or down.
The forecast for the benchmark interest rate remained unchanged for 2020, to close the year at the current level of 2 percent annually, and rose for 2021, from 2.75 percent to 3 percent.
Brazil's trade balance is expected to see a 55 billion U.S. dollar surplus in 2020 and 53.31 billion U.S. dollars in surplus in 2021.
Foreign direct investment in Brazil is expected to reach 55 billion U.S. dollars in 2020 and 65.48 billion U.S. dollars in 2021.
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