Markets once again lower expectations for Brazilian GDP

Markets once again lower expectations for Brazilian GDP
Photo: Jorge Maricato/Shutterstock

As the coronavirus crisis continues to worsen in Brazil — and more data on its economic impacts becomes known — the more pessimistic markets are becoming about the economy. In the latest Focus Report Market Readout, a weekly survey by the Central Bank among top-rated investment firms, GDP expectations for 2020 were lowered for the 16th straight week — from -5.89 to -6.25 percent. 

This is the first forecast since Q1 2020 results were announced. According to the Brazilian Institute of Geography and Statistics, the Brazilian economy shrank 1.5 percent from the previous quarter. In today’s Weekly Report, we explain why this crisis is different from the others.

According to the latest coronavirus update released by the Brazilian Health Ministry, the country confirmed 16,409 new Covid-19 infections, bringing its total tally up to 514,849 confirmed cases. With 480 new informed casualties, the number of deaths now stands at 29,314.

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