- POSTED: 20 Dec 2013 22:43
This graph is an experimental feature that tracks number of views over time.
Brazil's Central Bank revised its forecast for the country's 2013 GDP growth down from 2.5 per cent to 2.3 per cent in its latest inflation report released on Friday.
BRASILIA: Brazil's Central Bank revised its forecast for the country's 2013 GDP growth down from 2.5 per cent to 2.3 per cent in its latest inflation report released on Friday.
The revision coincides with expectations from market analysts who on Monday also predicted 2.3 per cent expansion this year.
It marked the third time the bank revised its growth forecast for 2013. In March, it predicted 3.1 per cent, then in June revised it downward to 2.7 per cent and down to 2.5 per cent in September.
Last year, the economy expanded a paltry one percent after 2.7 per cent in 2011 and a sizzling 7.5 per cent in 2010.
To stimulate the economy, the government has, since 2011, cut taxes on cars and home appliances and the central bank has slashed its base rate down to 7.5 per cent.
But this year, to rein in inflation, the bank had to resort to six consecutive hikes of the base rate, which now stands at 10 per cent.
Domestic consumption is expected to continue rising, albeit at a lower pace, and there is optimism due to the low jobless rate, which in November fell to a record low of 4.6 per cent, the report said.
The bank stuck to its forecast of 5.8 per cent inflation for 2013, above its official target of 4.5 per cent.
Next year, the bank is predicting 5.6 per cent inflation and 5.4 per cent in 2015.