Bankers revise Brazil’s growth outlook downward

December 27th, 2011 - 11:03 am ICT by IANS  

Rio de Janeiro, Dec 27 (IANS/EFE) Economists at Brazil’s banks have reduced their economic growth forecasts downward to 2.9 percent for 2011, the Central Bank said Monday.

This is the fifth straight downward revision by private bank economists, who are polled weekly by the Central Bank and lowered their gross domestic product forecast by two-tenths of a percentage point, compared to the previous estimate.

Brazil’s economy grew 3.2 percent in the January-September period, but it stagnated over the past few months due to the international financial crisis.

The bank economists, however, are standing by their 2012 forecast of 3.4 percent GDP growth, an estimate well below the government forecast of 4 percent to 5 percent growth.

The economists’ inflation forecast for this year rose slightly to 6.54 percent, while it was lowered to 5.33 percent for 2012, with both numbers being well above the government target of 4.5 percent for each year.

Prices rose 6.64 percent in Brazil between January and November.

–IANS/EFE
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