UPDATE 1-Analysts cut Brazil growth forecasts as outlook turns murkier
* Downward revision follows weak Q3 GDP figures * Outlook for rates, inflation stays unchanged SAO PAULO, Dec 3 (Reuters) - Economists slashed forecasts for Brazil's economic expansion for this and next year, a weekly central bank survey showed on Monday, reflecting the impact of underwhelming quarterly growth figures last week. Respondents to the central bank's weekly Focus survey expect growth this year to come in at a median 1.27 percent from 1.50 percent the prior week. Estimates for growth in 2013 came in at 3.70 percent, down from 3.94 percent the previous week. Brazil's economy grew just 0.6 percent in the third quarter on a sequential basis, half the pace expected by financial markets, data showed last week. Despite efforts by President Dilma Rousseff to spur growth through tax and interest-rate reductions, controls on imports and credit incentives, Brazil's economy will likely post below-trend expansion numbers for a second straight year. The central bank more than halved its own growth forecast to 1.6 percent in September from 3.5 percent at the beginning of the year. The forecasts represent the median of predictions from about 100 financial institutions surveyed weekly by the central bank. Forecasts for the central bank benchmark interest rate at the end of 2012 and 2013 remained unchanged at the current level of 7.25 percent, a record low. Consumer inflation over a 12-month period is expected to end this year at 5.43 percent, unchanged from the prior week's survey. In 2013, it is seen at 5.40 percent, also unchanged. The government targets inflation at 4.5 percent, with a tolerance margin of 2 percentage points.previous new previous new forecast forecast forecast forecast Consumer 5.43 5.43 5.40 5.40 inflation Benchmark rate 7.25 7.25 7.25 7.25 GDP growth 1.50 1.27 3.94 3.70
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'
- Four dead in apparent Connecticut murder-suicide
- South Korea expands air defense zone to partially overlap China's |
- Singer Susan Boyle reveals she has Asperger's syndrome: paper
- Winter storm pushes up U.S. East Coast after deep-freeze in the South