SAO PAULO--Brazilian economists and analysts increased their forecasts for the country's economic expansion this year after Latin America's largest nation posted a better-than-expected performance in the second quarter.
The 100 respondents in the survey increased their expectations for the country's economic expansion this year to 2.32% from 2.2%.
Brazil's economy grew by 3.3% in the second quarter compared with the second quarter a year earlier, and was up a solid 1.5% from the first quarter of 2013, the Brazilian Institute of Geography and Statistics reported Friday.
The expansion was above analysts forecast. On the other hand, the central bank survey showed that economists reduced their forecasts for country's expansion for the next year to 2.30% from 2.40%.
The ongoing inflationary pressures are likely to force the central bank to continue to increase the benchmark Selic rate and it will impact economic performance, according to analysts.
Economists increased their inflation forecast for the end of 2013 to 5.83% from 5.80%, and for the end of 2014 they maintained their view at 5.84%. In the meantime, economists increased their forecast for the Selic interest rate for the end of the next year to 9.75% from the 9.5% forecast last week's survey and maintained their view for the end of 2013 at 9.5%.
Currently the Selic rate is at 9%. The expectation for Brazil's debt-to-gross-domestic-product ratio at the end of this year was kept at 35%.
Economists and analysts reduced their forecast for the trade surplus this year to $3 billion from $3.4 billion, while the prediction for the current-account deficit was kept at $77 billion.
The Brazilian real is expected to end this year at BRL2.36 to the U.S. dollar, according to the survey.
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The 100 respondents in the survey increased their expectations for the country's economic expansion this year to 2.32% from 2.2%.
Brazil's economy grew by 3.3% in the second quarter compared with the second quarter a year earlier, and was up a solid 1.5% from the first quarter of 2013, the Brazilian Institute of Geography and Statistics reported Friday.
The expansion was above analysts forecast. On the other hand, the central bank survey showed that economists reduced their forecasts for country's expansion for the next year to 2.30% from 2.40%.
The ongoing inflationary pressures are likely to force the central bank to continue to increase the benchmark Selic rate and it will impact economic performance, according to analysts.
Economists increased their inflation forecast for the end of 2013 to 5.83% from 5.80%, and for the end of 2014 they maintained their view at 5.84%. In the meantime, economists increased their forecast for the Selic interest rate for the end of the next year to 9.75% from the 9.5% forecast last week's survey and maintained their view for the end of 2013 at 9.5%.
Currently the Selic rate is at 9%. The expectation for Brazil's debt-to-gross-domestic-product ratio at the end of this year was kept at 35%.
Economists and analysts reduced their forecast for the trade surplus this year to $3 billion from $3.4 billion, while the prediction for the current-account deficit was kept at $77 billion.
The Brazilian real is expected to end this year at BRL2.36 to the U.S. dollar, according to the survey.
nasdaq.com
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