In ten days, the government cuts its 2020 GDP growth projection from 2,1% to zero.
Brazil's Economy Ministry announced on Friday a cut in its GDP growth projection to 0,02%, down from the 2,1% increase indicated ten days ago. The inflation forecast is now for a 3,05% rise in the IPCA (Broad Consumer Price Index).
BRASILIA (Reuters) - The Ministry of Economy announced this Friday a cut in its projection for Gross Domestic Product (GDP) growth to 0,02%, compared to a 2,1% increase indicated ten days ago, demonstrating the rapid deterioration of expectations amid the advance of the coronavirus and its dramatic impact on the economy.
Regarding inflation, the economic team now forecasts a 3,05% increase in the IPCA (Brazilian consumer price index) this year, compared to 3,12% previously. The projection for the average price of Brent crude oil has fallen to $41,87 per barrel, from $52,70 last week. The estimate for the dollar at the end of the period is now 4,35 reais, down from 4,20 reais previously.
By Marcela Ayres