Market improves Brazil’s 2020 GDP projections

The latest edition of the Brazilian Central Bank’s Focus Report — a weekly survey of market analysts — showed an improvement in the country’s GDP projections for 2020. Forecasts rose from an estimated drop of 5 percent to a contraction of 4.8 percent. Meanwhile, the market predicts that inflation will rise to 2.99 percent by the end of the year, up from the report’s previous findings of 2.65 percent.

This is the first time since May 14 that analysts have predicted an annual GDP drop of less than 5 percent. Back in June, economists had forecast a contraction of as high as 6.6 percent.

Despite improving forecasts for this year, Focus Report analysts slightly reduced their growth projections for 2021, from 3.47 percent to 3.42 percent.