Brazil’s economic outlook for 2020 improved for the fourth consecutive week, as a survey conducted by the central bank showed earlier this week, with visible signs of recovery from the crisis emerging from the looming malaise building up in recent months. The country’s GDP will decrease to -5.8% this year in the 100 economics prediction for the central bank weekly survey. In last week's survey, the number is at -5.95% and -6.5% a month ago.
The latest figures will still be the biggest annual dip ever recorded, but the improvement in retail, industrial indicators and electricity consumption after the lockdown measures lifted and reopening in business showing further recoveries. Roberto Campos Neto, the central bank president disclosed that last week's forecast of -6.4% GDP sounds too pessimistic, and Adolfo Sachsida, Economic Policy Secretary, opined that the final 2020 contraction will be closer to government projection of -4.7%. Current projection of account deficit for fifth consecutive week to $8.3 billion is shown in the latest weekly survey. The position last week was on $8.9 billion, $13.5 billion deficit a month ago, and almost touched $40 billion in May.
Staying on four consecutive weeks, the projecting economist is still maintaining their interest rate at 2.00% at the end of this year. The central bank also being anticipated to lower the SELIC rate benchmark by 25 basis points, to a projected rate of 2.00% next month.
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Published on July 30, 2020 6:03 AM (GMT+8)Last Updated on July 30, 2020 5:00 PM (GMT+8)
