In the view of analysts, the exit from the recession will occur in the face of a scenario of falling interest rates and the cost of living of Brazilians
With the impact of economic reforms, financial market analysts project that the Brazilian economy will overcome the most serious recession in history. Now, experts expect that the Gross Domestic Product (GDP), which is the sum of all the riches produced in the country, advance 0.46%. A week ago, that same estimate was 0.43%.
The information is part of the Focus Bulletin , a weekly publication that brings together the projections of about 100 analysts. The Central Bank is responsible for collecting and disseminating the data.
The projection for GDP occurs amid an improvement in the scenario of interest and inflation. For the eighth consecutive week, the projection for the Extended Consumer Price Index (IPCA) fell, this time from 4.04% to 4.03%. For 2018, the scenario also improved, from 4.32% to 4.30%.
And the improvement in inflation projections also occurs at a time when interest rates are falling in the country. The Selic rate is expected to end the year at 8.50% . For 2018, the projection is that the rate stays at the same level.
At the last meeting, the board of the Central Bank decided to reduce the Selic rate from 12.25% to 11.25% per year. The decision was followed by the announcement of lower interest rates offered by major financial institutions.
Source: Portal Brasil, with information from the Central Bank