Brazil recovery continues as 2.8 pct growth expected in 2018

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Financial analysts in Brazil have raised their 2018 GDP expectations from 2.7 to 2.8 percent, amid growing optimism about the country's economic recovery, the Central Bank announced on Monday.

In the bank's Focus report which polls Brazil's main financial institutions, the feeling was that the recovery will last into 2019, although growth expectations for that year were kept at three percent.

For the inflation rate, analysts reduced their predictions from 3.94 to 3.84 percent, which would place the inflation rise within the government's desired range of 3 to 4.5 percent. For 2019, the inflation rate is expected to increase by 4.25 percent.

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According to financial institutions, the country's basic interest rate, Selic, is likely to close out 2018 at its current level of 6.75 percent before rising throughout 2019 to reach eight percent.

In terms of exchange rates against the US dollar, projections believe the real will stand at 3.3 to 1 US dollar by the end of 2018 and 3.39 in 2019.

Finally, in terms of foreign direct investment, estimates are set for 80 billion US dollars, remaining flat at this level for the next two years.

Source(s): Xinhua News Agency