Brazil revises down 2012 GDP forecast to 3 pct

BRASILIA, July 20 (Reuters) - Brazil's government sharply lowered its economic growth forecast for this year to 3 percent from a previous 4.5 percent, according to a planning ministry report released on Friday.

The Brazilian central bank last month revised its economic growth forecast to 2.5 percent for 2012, from 3.5 percent previously. Economic activity has slowed dramatically due the fallout of the European debt crisis and previous government efforts to prevent the economy from overheating.

Private economists are more pessimistic, with most predicting economic growth below 2 percent for the year and a few forecasting growth closer to 1.5 percent -- far below last year's meager 2.7 percent expansion and the red-hot 7.5 percent growth of 2010.