Brazil analysts cut their growth estimates for this year and next while a key measure of activity fell short of forecasts in fresh sign of headwinds in Latin America’s largest economy.
Analysts cut their 2019 growth forecast to 1.95% from 1.97% and reduced their 2020 estimate to 2.58% from 2.70%, according to the central bank’s latest survey of economists. A separate release showed economic activity fell by 0.73% in February, more than twice the median estimate of analysts in a Bloomberg survey.
Put together, the statistics are the latest sign that Brazil President Jair Bolsonaro is struggling to revamp growth. The economy has been hobbled for months by high unemployment, weak investments and uneven confidence levels. On top of that, there’s been slow progress on the administration’s key proposals, including a bill sought by investors that seeks to control debt by cutting pension expenditures.
Analysts in the central bank survey also lifted their 2019 year-end inflation forecast to 4.06% from 3.90% previously.
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