SÃO PAULO – Market analysts in Brazil have predicted, for the first time, that the country’s economy will expand by less than 1% in 2014, according to a Central Bank report published on Monday.
Analysts now believe the Brazilian economy will grow by 0.97% this year, according to the bank’s most recent Focus Bulletin, after analysts cut their GDP (gross domestic product) growth forecasts for an eighth consecutive week.
The figures, based on a survey of around 100 Brazilian economists, are the worst estimate recorded since the Central Bank began publishing the data. Last week the figure stood at 1.05%.
The news is yet another blow to the economic credentials of the government of President Dilma Rousseff, who is seeking re-election in October, and is also likely to hit confidence in Latin America’s largest economy, already hampered by low confidence and concerns over above-target inflation.