Brazil's financial market forecasts 5,02% drop in GDP in 2020
Brasilia, Oct 19 (Prensa Latina) Brazil's financial market upgraded the domestic economic growth forecast for 2020, and expected the Gross Domestic Product (GDP) to face a 5,02% drop, the Central Bank of Brazil said on Monday.
Based on projections from consulting firms and commercial operators that appear on Focus weekly, GDP would drop from 3.5%, as forecast last week, to 3.47% by 2021.
The financial market raised its estimated inflation rate from 2.05 percent to 2.12 percent for the year, and lowered it from 3.01 percent to 3 percent for next year.
The projection in the foreign exchange market remained at R$5.35 per US dollar at the end of this year.
The International Monetary Fund (IMF), on the other hand, forecast that Brazil's GDP will fall by 5.8% in 2020 due to the Covid-19 pandemic.
In this regard, IMF highlighted Brazil's industrial activity recovery in July and August, but warned the service sector still faces some problems due to the pandemic.
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