Home Business Market Shrinks to 1.23 Percent of GDP This Year

Market Shrinks to 1.23 Percent of GDP This Year


Economists polled in the Central Bank’s Focus survey have made slight adjustments to their expectations this week, with further cuts in the estimate for economic growth this year.

The survey released Monday by the Central Bank showed that the growth estimate for the Gross Domestic Product (GDP) is now 1.23%, down from 1.24% in the previous week. For 2020 there was no change in the projection of an expansion of 2.50.

The market also kept the IPCA high of 4.07% this year and 4.00% in the next. The center of the official 2019 target is 4.25 percent and, by 2020, 4 percent, both with a margin of tolerance of 1.5 percentage points to more or less.

IPCA-15 rose 0.35% in May, accumulating a high of 4.93% in 12 months, according to data released by the IBGE on Friday.

The weekly Focus survey with a hundred economists also showed that the basic interest rate should end 2019 at 6.5% and 2020 at 7.25%, unchanged.

The Top-5, the group with the best forecasts, continues to see the Selic at 6.5% and 7.0%, respectively.