Market News

Brazil sees faster growth in 2019, cuts 2018 estimate

BRASILIA, Sept 27 (Reuters) - The Brazilian central bank on Thursday predicted that economic growth is likely to accelerate next year but also trimmed its 2018 gross domestic product forecast in the wake of a string of underwhelming indicators.

In its quarterly inflation report, the bank forecast 2.4 GDP percent growth next year, in its first estimate for 2019.

It also trimmed its 2018 growth estimate to 1.4 percent from 1.6 percent, pointing to “a high level of output gap, reflected in low capacity utilization in the industry and, mainly, the unemployment rate.”

The forecasts are mostly in line with market consensus. A weekly central bank survey of economists puts 2018 growth at 1.35 percent and 2019 growth at 2.5 percent. (Reporting by Marcela Ayres and Bruno Federowski Editing by Chizu Nomiyama)