Brazilian central bank lowers economic growth projection

3 July 2013

The Brazilian central bank’s projection for Brazil’s economic growth this year has fallen for the seventh consecutive time, this time from 2.46 percent to 2.40 percent, as well as falling from 3.1 percent to 3.0 percent for 2014, the bank said in its weekly analysis.

The central bank also forecasts that public sector debt as a percentage of Gross Domestic Product (GDP) will remain at 35 percent both this year and in 2014, and that the trade surplus will fall from uS$6.5 billion to US$6 billion this year and from US$8 billion to US$7.35 billion in 2014.

The current account deficit will rise from US$73.76 billion to US$74.5 billion this year and from US$79 billion to US$79.75 billion in 2014.

When the current account posts a deficit this means the country is being funded by external savings.

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