Brazil banks estimate lower inflation, growth in 2012
BRASILIA (BDCi) – – The weekly survey published and reported by Brazil’s central bank concludes that 2012 will see inflation reduced to 5.32% from an estimated rate of 6.55% in 2011.
The 6.55% estimate for 2011 is slightly higher than the high end of the target range as set by policymakers earlier in the year which was 2.5 to 6.5%. The year just passed will be the first year since 2003 that the inflation rate would have missed the target range.
The miss may have been worse if it hadn’t have been for the global economic deterioration brought on by the Eurozone debt crisis which has slowed down growth prospects in both China and Brazil. The economic downturn cooled the Brazilian economy which in turn kept prices in check.
The survey also covered the area of economic growth rates. Estimates were lowered for both 2011 and 2012 to 2.87% and 3.30% respectively. By comparison, 2010 had an actual growth rate of 7.5%.
Benchmark interest rates are also expected to decrease, from 11.0% in 2011 to 9.5% in 2012.
The “Focus” survey polls more than 100 financial institutions in Brazil about the prospects of the broader economy in the next 12 and 24 month periods.
By Don Weinstein Source: Yahoo Photo courtesy of: StudiesAbroad.com 2 January 2012
1:46p.m. P.S.T.