Brazil GDP growth forecast dips

Brasilia, July 23 (IANS) For the 10th consecutive week, Brazil's financial market downgraded its gross domestic product (GDP) growth forecast for 2013 from 2.31 percent to 2.28 percent, the Central Bank of Brazil said.

According to the bank's Focus poll, a survey of the country's main financial institutions, the growth forecast for industrial production also fell, from 2.23 percent to 2.10 percent, reported Xinhua.

Just last month, both GDP growth and industrial output growth were expected to come in at 2.46 percent.

Analysts also reduced the projected growth estimate for 2014 from 2.8 percent to 2.6 percent, though industrial output remained at 3 percent.

This year's projected inflation, meanwhile, was down from 5.8 percent to 5.75 percent, reducing the possibility of inflation surpassing the official target of 4.5 percent, with two-point leeway.

Analysts expect the basic interest rate, currently at 8.5 percent, to end the year at 9.25 percent, with inflation in 2014 registering 9.38 percent.

The trade surplus forecast for 2013 went from $6 billion to $5.85 billion and for 2014, to $8 billion.

The forecast for foreign direct investment (FDI) was held steady at $60 billion for both 2013 and 2014.


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