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Experts design 2018 with strong growth and controlled inflation

Focus Bulletin

GDP is expected to grow by more than 2% amid a low and controlled inflation scenario with one-digit interest rates

The financial market projects a comfortable scenario for the Brazilian economy in 2018. The expectation is controlled inflation, high growth and single - digit interest -  a framework that creates an environment for investment and employment.

Following the government-led structural reforms, such as measures that reorganize public accounts and reduce bureaucracy, this favorable scenario is becoming ever closer.

Starting in the third quarter of this year, the country will once again grow at more robust rates. Data from the Focus Bulletin, a survey that meets the expectations of around 100 analysts, show that Brazil will advance 1.10% in comparison with the third quarter of 2016. In the last period of the year, this rate will advance to 1.87 %.

While the performance of the Gross Domestic Product (GDP) shows a gradual and increasingly significant improvement, inflation continues at a rate of sharp deceleration. By the end of the year, the Broad Consumer Price Index (IPCA) will retreat to a rate of 4.47%.

This expected HICP for the year, however, has undergone continued revisions for the better. In this last edition of Focus, the indicator went from 4.64% to 4.47% - the sixth consecutive decline. By 2018, inflation is projected to remain at the center of the target at 4.5%.

Positive scenario

The figures show that after the recession of 2016, the Brazilian will again see, in 2017, controlled inflation and GDP growth. Next year, however, it promises to be even better. So far, the forecast is for the country to grow 2.30%, but this number may improve - in the last two weeks the market has increased this forecast.

Source: Portal Brasil, with information from the Central Bank