June 02, 2014, 08:06:00 AM EDT
SAO PAULO–Economists reduced their growth outlook for Brazil in 2014 and for the next year, after a tepid economic activity in the first quarter, according to a weekly central-bank survey published Monday.
The 100 respondents in the survey reduced their estimates for economic growth this year to 1.50% from 1.63%, while they cut their 2015 estimate to 1.85% from 1.96%.
Gross domestic product expanded a seasonally adjusted 0.2% in the January-to-March period from the previous quarter, the Brazilian Institute of Geography and Statistics, or IBGE, said last week. Compared with a year earlier, first- quarter growth was 1.9%.
Meanwhile, economists kept their estimates for Brazil’s consumer-price index, or IPCA, for the end of this year at 6.47% and slightly raised their view for the next year to 6.01% from 6%.
Respondents reduced their view for the Selic interest rate at the end of this year to 11% from 11.25% and maintained their view for next year at 12%.
The Brazilian real is expected to end this year at BRL2.40 to the U.S. dollar, according to the survey.
The forecast for the trade surplus this year was kept at $3 billion, while the current-account deficit view was maintained at $80 billion.