Private sector analysts have cut their 2014 growth forecasts for Brazil’s economy to 0.81 percent from 0.86 percent last week, marking the 11th straight week of downward revisions, the Central Bank said Monday.
Analysts also cut their 2015 economic growth forecast from 1.5 percent to 1.2 percent.
The gross domestic product (GDP) estimates were included in the Boletin Focus, a weekly Central Bank survey of analysts from about 100 private financial institutions on the state of the national economy.
Analysts expected Brazil’s economy to grow 1.05 percent in 2014 and 1.5 percent in 2015 in the survey released four weeks ago.
The downward revisions to the GDP forecasts have been driven by the poor outlook for the industrial sector, whose production has been falling gradually despite government incentives to stimulate factory output.
Analysts, according to the survey, expect Brazil’s industrial production to contract by 1.53 percent this year, compared to the 0.90 percent drop forecast just four weeks ago.
The government, for its part, expects Brazil’s GDP to expand by 2.5 percent this year, while the Central Bank was forecasting 2 percent economic growth in its last quarterly analysis.
Brazil’s GDP expanded by 7.5 percent in 2010, but the economy posted tepid growth of 2.7 percent in 2011 and just 1 percent in 2012.
Latin America’s largest economy grew 2.3 percent in 2013.
Private sector analysts revised their 2014 inflation estimates downward from 6.39 percent last week to 6.26 percent this week.
The government has an inflation target of 4.5 percent for this year, with a 2 percent band.