Brazil 2016 GDP view drops to zero, inflation forecast rises-poll
BRASILIA, Aug 10 (Reuters) - Brazil's economy is unlikely to grow in 2016 following a steep contraction in 2015, according to a weekly central bank survey of economists on Monday. The median forecast of about 100 financial institutions projected zero growth for Brazil's gross domestic product in 2016, down from estimates of a 0.2-percent increase in the prior week's survey. Brazil's economy is expected to shrink 1.97 percent in 2015. The survey also showed a slight increase in inflation forecasts for 2016, to 5.43 percent, from 5.40 percent previously. The central bank last week said it could raise interest rates from the current 14.25 percent in coming months if inflation estimates for next year deviated significantly from its target of 4.5 percent. (pct) 2015 2016 previous new previous new forecast forecast forecast forecast Consumer inflation 9.25 9.32 5.40 5.43 Exchange rate 3.35 3.40 3.49 3.50 (reais per U.S dollar, end-period) Interest rate 14.25 14.25 12.00 12.00 (end-period) GDP growth -1.80 -1.97 0.20 0.00 Industrial output -5.00 -5.21 1.30 1.15 (Reporting by Silvio Cascione Editing by W Simon)
© Thomson Reuters 2016 All rights reserved.