Brazil Economic Outlook
August 11, 2015Brazil’s economy continues to disappoint. After two consecutive quarters of growth, Latin America’s largest economy shrunk in the first quarter of 2015, dragged down by falling private consumption, which recorded its worst result in over six-years. More recently, retail sales lost steam in May and industrial production swung back to a contraction in June. The gloomy economic data and increasing political uncertainty have caused confidence levels to languish at low levels, with consumer confidence plummeting to a new record low in July. The economy’s poor performance has caused tax revenues to dive and on 22 July the government asked Congress to approve a significant reduction to its 2015 primary budget surplus target. The government revised its target down from a primary surplus of 1.10% of GDP to a meagre 0.15% of GDP. Moreover, there is still a possibility that the government could miss this target if the economy deteriorates further than expected or political support for austerity measures wanes.
Brazil Economic Data
5 years of Brazil economic forecasts for more than 30 economic indicators.
See all the data and analysis available in each of our Regional and Country reports.
|Bond Yield||14.17||0.0 %||Aug 25|
|Exchange Rate||3.62||1.81 %||Aug 25|
|Stock Market||44,545||0.47 %||Aug 25|
Brazil Economic Growth
August 11, 2015Austerity measures, high inflation and depressed confidence are expected to dampen private consumption further this year and cement the economy’s downward trajectory. LatinFocus panelists see the economy recording its worst result in over two decades and tallying a 1.7% contraction in 2015, which is down 0.3 percentage points from last month’s forecast. For 2016, panelists see the economy rebounding and growing 0.3%.
Brazil Economic News
August 25, 2015
In July, the current account balance registered a deficit of USD 6.2 billion, which was a notable improvement from the USD 9.3 billion deficit recorded in the same month last year.
August 21, 2015
In June, economic activity fell 0.6% over the previous month in seasonally-adjusted terms, according to the Central Bank’s monthly indicator for economic activity (IBC-Br, Indice de Atividade Economica do Banco Central).
August 10, 2015
Consumer prices in July increased 0.62% over the previous month.
August 7, 2015
The Brazilian real’s (BRL) downward spiral has continued in recent weeks, as the currency plunged to a 12-year low in August against the U.S. dollar.
August 6, 2015
Brazil’s government asked Congress to approve a significant reduction to its 2015 primary budget surplus target on 22 July following a return to contraction in the first quarter and months of gloomy economic data.