Brazilian central bank lowers economic growth projection to 2.93 pct

29 May 2013

The projection for growth of the Brazilian economy has been lowered from 2.98 percent to 2.93 percent, said the Central Bank of Brazil, which kept its forecast for GDP growth in 2014 at 3.5 percent.

Recently, the governor of the Central Bank, Alexandre Tombini, said that the new round of rises of Selic, Brazil’s base interest rate, would not interfere with economic growth this year.

The Central Bank also lowered its projection for the trade surplus from US$9.05 billion to US$8.3 billion this year, and in 2014 the surplus is expected to increase from US$10 billion to US$10.4 billion.

The current account balance, which records Brazil’s foreign purchases and sales of goods and services, will this year post a deficit of US$72 billion, as compared to a previous forecast of US$70.9 billion, which will increase to a deficit of US$78 billion in 2014, which is higher than a previous forecast of US$75.5 billion.

The projection for foreign direct investment (FDI) was left unchanged at US$60 billion, both in 2013 and 2014. (macauhub)