Banks expect a 3.88% GDP slide

16 de maio de 2016

Estimates by the financial institutions on the economy show a 3.88% GDP drop this year over 2015, according to survey by the Brazilian Central Bank. Previous forecast pointed to a 3.86% decline.

Brasília – The forecast made by financial institutions regarding the economy’s downturn this year was slightly adjusted. The estimation for the decline of the Gross Domestic Product (GDP) was changed from 3.86% to 3.88%. For 2017, the growth forecast remained at 0.50%. The estimations are part of the weekly survey made by the Brazilian Central Bank (GDP) with financial institutions.

The forecast on the inflation rate for this year, as measured by the Extended National Consumer Price Index (IPCA), remained at 7%. For 2017, the inflation forecast dropped from 5.62% to 5.50%. The estimation by the financial institutions regarding the Selic, the benchmark interest rate, at the end of 2016 remained at 13%. For 2017, the estimate went from 11.75% to 11.50% per year. Currently, the Selic is at 14.25%.

*Translated by Sérgio Kakitani