Brazil’s central bank revises growth forecast upwards to 4.7 pct

29 June 2007

Brasilia, Brazil, 29 June – The Central Bank of Brazil has revised its prediction for economic growth this year from 4.1 to 4.7 percent, the bank said in its latest quarterly report.

Brazil’s monetary authority has lowered its April inflation projection for this year from 3.8 percent to 3.5 percent.

Brazil’s economic expansion is being driven by the agriculture and cattle sectors, with growth of 7 percent compared to the 4.8 percent forecast in April, and by the services sector, with expansion of 4.3 percent, nearly double the earlier projection.

The central bank’s forecast is more optimistic than the government’s, whose targets for this year are growth of 4.5 percent and inflation of 4.5 percent.

On Tuesday, Brazil’s central bank revised its foreign direct investment (FDI) for this year upwards to US$ 25 billion following positive results in the first four months of the year.

The bank’s previous forecast for total FDI was for US$ 20 billion. (macauhub)