Economic review

Brazil's financial analysts downgrade 2018 growth forecast

2018-06-05 04:38:42 (Beijing Time)


BRASILIA, June 4 (Xinhua) -- Brazil's financial market has downgraded its 2018 economic growth forecast from 2.37 percent to 2.18 percent, according to a Focus poll released Monday by the Central Bank.

Four weeks ago, a similar survey of the country's leading financial institutions showed GDP was expected to expand 2.7 percent.

The downgrade was blamed on a slower than expected rate of economic recovery and crippling truckers' strikes in May that brought deliveries and supplies to a standstill for 11 days, causing shortages of fuel and fresh produce.

For 2019, analysts maintained their growth forecast at 3 percent.

Financial analysts maintained their benchmark interest rate forecast for 2018 at the current rate of 6.5 percent.

The projected exchange rate for the end of the year rose slightly from 3.48 to 3.5 reals to the U.S. dollar, as it did for 2019 (from 3.47 to 3.5 reals to the U.S. dollar).

Brazil's expected trade surplus for 2018 went from 57.15 billion U.S. dollars to 57 billion U.S. dollars, with the 2019 forecast adjusted from 49.8 billion dollars to 49.3 billion dollars.

Projected foreign direct investment in Brazil remained at 75 billion U.S. dollars for 2018 and 80 billion dollars for 2019.