Tue, 27 Oct 2020

BRASILIA, Sept. 28 (Xinhua) -- Brazil's financial analysts adjusted their economic growth forecast for 2020 from a 5.05 percent contraction to a 5.04 percent contraction, the Central Bank of Brazil said on Monday.

According to the bank's weekly survey of leading financial institutions, analysts maintained their growth forecast for 2021 at 3.5 percent for the 18th week in a row.

Regarding inflation, the market raised its estimate from 1.99 percent to 2.05 percent for the year, and kept it at 3.01 percent for the next.

Their projections fall within the government's target inflation rate of 4 percent in 2020 and 3.75 percent in 2021, with a margin of error of 1.5 percentage points up or down.

The forecast for the benchmark interest rate remained unchanged, to end the year at the current level of 2 percent, and reach 2.5 percent by the end of next year.

Regarding the trade balance (exports and imports), analysts expected a surplus of 55.15 billion U.S. dollars for 2020 and 53.31 billion dollars in 2021.

Foreign direct investment in Brazil is projected to reach 55 billion dollars in 2020 and 68.5 billion dollars in 2021.

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