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After GDP hikes, experts predict stronger growth in 2017 and 2018

Focus Bulletin

Revision in the financial market estimates occurred after the advance of 1.4% in the Gross Domestic Product (GDP) of the third quarter

Economists of financial institutions have once again bet on stronger growth of the Brazilian economy for this and next year. Analysts now expect the Gross Domestic Product (GDP) to advance 0.89% in 2017, compared to an earlier estimate of 0.73%.

For 2018, projections point to a 2.60% growth of the Brazilian economy. Previously, this estimate was at 2.58%. The figures are part of the Focus Bulletin, a weekly document prepared by the Central Bank with estimates of about 100 analysts.

The increase in the projection for the GDP occurs soon after the economy advanced in the third quarter of the year, which confirmed the exit from the recession. In the period, the economy grew 1.4% compared to the same period last year.

This advance was made possible by the measures taken by the Government of Brazil to make the country more efficient, less bureaucratic and with more wealth. Experts and economists have responded positively in recent months to the resumption of the economy and the structural reforms implemented during the period.

Inflation

The  experts consulted by the Central Bank also projected an inflation within the parameters of the institution, which seeks to accommodate the rate of inflation between 3% and 6%, closer to the center's goal of 4.5%. In this case, the analysts' estimate predicts inflation of 3.03% this year and 4.02% in 2018.

Source: Government of Brazil, with information from the Central Bank