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Brazil's financial market forecasts 5 pct drop in GDP in 2020

Xinhua News,BRASILIA
2020-10-20 03:30

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BRASILIA, Oct. 19 (Xinhua) -- Brazil's financial market slightly upgraded its economic growth forecast for 2020, from a 5.03 pct drop in gross domestic product (GDP) to a 5 percent drop, the Central Bank of Brazil said on Monday.

The bank's weekly survey of leading financial institutions showed analysts modified their projections for 2021 from 3.5 percent growth to 3.47 percent.

Analysts raised their inflation forecast for the end of the year from 2.47 percent to 2.65 percent, but maintained it at 3.02 percent for the end of 2021.

Regarding the benchmark interest rate, the forecast held steady at the current 2 percent for 2020 and 2.5 percent for 2021.

Brazil's real is expected to trade at 5.35 to the U.S. dollar at the end of the year and at 5.1 to the dollar at the end of the next.

The trade balance (balance between exports and imports) is forecast to see 57.56 billion U.S. dollars in surplus in 2020 and 55 billion dollars in 2021.

Foreign direct investment in Brazil is projected to reach 50 billion U.S. dollars in 2020 and 65 billion U.S. dollars in 2021.
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