Reuters logo
UPDATE 1-Economists trim Brazil GDP growth view for 5th week
December 17, 2012 / 11:01 AM / in 5 years

UPDATE 1-Economists trim Brazil GDP growth view for 5th week

* Brazil seen growing 1.00 pct this year
    * Interest rates to remain at 7.25 pct through 2013
    * 2012 inflation view revised up to 5.60 pct


    By Silvio Cascione
    SAO PAULO, Dec 17 (Reuters) - Economists trimmed forecasts
for Brazil's economic growth this year and next for the fifth
straight week, a central bank survey showed on Monday. 
    The largest Latin American economy -- and one of the fastest
growing countries only two years ago -- is now expected to
expand just 1.00 percent this year, down from 1.03 percent seen
in the prior week, according to the poll's median forecasts.
    Brazilian businesses have suffered from lackluster
investment levels, rising labor costs and a heavy tax burden.
President Dilma Rousseff has offered several stimulus measures
over the past year and according to media reports is studying
further steps to revive growth. 
    The central bank also cut interest rates 10 straight times
to a record low of 7.25 percent, and is expected to leave
borrowing costs there at least through the end of 2013,
according to the poll of around 100 economists.
    Estimates for 2012 and 2013 inflation were revised up
slightly. Consumer prices should rise 5.60 percent in 2012, up
from a forecast of 5.58 percent in the prior week, and 5.42
percent in 2013, up from an estimate of 5.40 percent previously.
    The government targets inflation at 4.5 percent, with a
tolerance margin of 2 percentage points in each direction.
Inflation accelerated more than expected in November after
transportation and electricity prices spiked.(pct)                2012                 2013
                      previous   new       previous  new
                      forecast   forecast  forecast  forecast
 Consumer inflation   5.58       5.60      5.40      5.42
 Exchange rate        2.08       2.08      2.08      2.08

 Interest rate        7.25       7.25      7.25      7.25

 GDP growth           1.03       1.00      3.50      3.40
 Industrial output    -2.27      -2.32     3.75      3.70

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below