Brazil’s GDP growth forecast lowered

July 3rd, 2012 - 2:18 pm ICT by IANS  

Brasilia, July 3 (IANS) For the eighth consecutive week, Brazil’s financial market decreased its projected growth figure for this year’s gross domestic product (GDP) from 2.18 to 2.05 percent, according to the results of a Brazilian Central Bank Focus poll.

The new rate comes a week after the Central Bank announced that its 2012 GDP growth forecast had decreased from 3.5 to 2.5 percent, reported Xinhua.

Until last month, the financial market expected a GDP growth rate higher than last year’s 2.7 percent.

The industrial sector has been the most affected by this year’s deceleration, with scarce growth of 0.39 percent in 2012, though a recovery of 4.3 percent is expected in 2013.

The economic growth forecast for 2013 stayed at 4.2 percent, according to the Focus poll that was released Monday.

The 2012 inflation forecast fell for the seventh consecutive time to 4.93 percent, while that for 2013 stayed at 5.5 percent. In both cases, the rates fell within the official target rate of 4. 5 percent, with a two-point margin.

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