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Central Bank: forecast for Brazil growth in 2017 increased from 0.7% to 1%

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According to data released by the Central Bank, Brazilian GDP growth will be driven by growth in agriculture and livestock, which is expected to grow by 12.8 percent, compared to an earlier forecast of + 12.1 percent. The increase in domestic consumption should also contribute positively to growth. In this segment, expectations increased from 0.4% to 1.2% this year.

Reflecting mainly the positive performance of the gross domestic product (GDP) in the third quarter, with a growth of 0.3% compared to the second quarter, the Central Bank of Brazil (BC) has increased its economic growth forecast of 0, 7% at 1%, according to the Quarterly Inflation Report (QIR). In 2018, the Central Bank expects a growth of 2.6%, against 2.2% in the previous report, published in September.

The services sector should also show a positive trend, with a 0.3% increase of -0.8% in the previous report. The performance of industrial activity in 2017 went from -1.4% to -0.3%, while in construction, the projection went from -6.6% to -5.2%.

With regard to GDP growth forecasts for 2018, the Central Bank notes that, on the supply side, agricultural activities should fall back. Projections went from + 1.5% in the previous estimate to -0.4%. Meanwhile, industry and services are expected to post gains of 2.9% and 2.4%, respectively.