LatAm: Brazilian growth forecasts downgraded

The Brazilian Central Bank recently revised its 2017 Gross Domestic Product (GDP) forecast down from 0.80% to 0.50%. This announcement comes just a week after the Brazilian government cut its economic growth forecast from 1% to 0.5%, demonstrating the difficult period faced by the Brazilian economy. Despite the falling forecast, the Central Bank still expects to see growth after two years of recession, with the economy contracting 3.8% in 2015 and 3.6% in 2016, the worst period of economic performance seen in Brazil since the 1930.

Despite the falling forecast, the Central Bank still expects to see growth after two years of recession, with the economy contracting 3.8% in 2015 and 3.6% in 2016, the worst period of economic performance seen in Brazil since the 1930.

The Central Bank also pointed out that the Brazilian economy shows sign of stabilising in the near future, with agricultural production expected to rise 6.4%, up from a predicted 2.4%, while consumer spending is also predicted to rise slightly after falling 4.2% the previous year. Inflation is also in the target range at 3.9% to 4%, slightly lower than the annual target of 4.5%.

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