Reuters: US Dollar Report: UPDATE 1-Analysts cut Brazil growth forecasts as outlook turns murkier

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UPDATE 1-Analysts cut Brazil growth forecasts as outlook turns murkier Dec 3rd 2012, 10:54 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Mon Dec 3, 2012 5:54am EST * Downward revision follows weak Q3 GDP figures * Outlook for rates, inflation stays unchanged SAO PAULO, Dec 3 (Reuters) - Economists slashed forecasts for Brazil's economic expansion for this and next year, a weekly central bank survey showed on Monday, reflecting the impact of underwhelming quarterly growth figures last week. Respondents to the central bank's weekly Focus survey expect growth this year to come in at a median 1.27 percent from 1.50 percent the prior week. Estimates for growth in 2013 came in at 3.70 percent, down from 3.94 percent the previous week. Brazil's economy grew just 0.6 percent in the third quarter on a sequential basis, half the pace expected by financial markets, data showed last week. Despite efforts by President Dilma Rousseff to spur growth through tax and interest-rate reductions, controls on imports and credit incentives, Brazil's economy will likely post below-trend expansion numbers for a second straight year. The central bank more than halved its own growth forecast to 1.6 percent in September from 3.5 percent at the beginning of the year. The forecasts represent the median of predictions from about 100 financial institutions surveyed weekly by the central bank. Forecasts for the central bank benchmark interest rate at the end of 2012 and 2013 remained unchanged at the current level of 7.25 percent, a record low. Consumer inflation over a 12-month period is expected to end this year at 5.43 percent, unchanged from the prior week's survey. In 2013, it is seen at 5.40 percent, also unchanged. The government targets inflation at 4.5 percent, with a tolerance margin of 2 percentage points.previous new previous new forecast forecast forecast forecast Consumer 5.43 5.43 5.40 5.40 inflation Benchmark rate 7.25 7.25 7.25 7.25 GDP growth 1.50 1.27 3.94 3.70 Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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