Brazil Economic Outlook
January 19, 2016Low commodity prices, high inflation, large fiscal imbalances and political crisis all came to a head in 2015, with Brazil’s economy on pace to have contracted at the fastest rate in over a decade. After GDP tallied the worst annual reading on record in Q3, data for Q4 remained abysmal: industrial production plunged in November and consumer confidence fell to a new record low in December. On the political front, Nelson Barbosa took over as Finance Minister on 21 December, inheriting the tough role of trying to halt the government’s deteriorating finances amid dismal economic data. Barbosa, who is more left-leaning than his predecessor, has stated that correcting government accounts remains a top priority, however, a specific plan has not yet been unveiled and doubts remain regarding whether he has the ability or willpower to pass vital reforms.
Brazil Economy Data
5 years of Brazil economic forecasts for more than 30 economic indicators.
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|Bond Yield||15.92||-1.14 %||Feb 10|
|Exchange Rate||3.93||1.10 %||Feb 10|
|Stock Market||40,377||-0.53 %||Feb 10|
Brazil Economic Growth
January 19, 2016Brazil’s outlook is bleak. The economy is unlikely to rebound without much-needed yet unpopular economic reforms, but a hostile Congress and record-low approval ratings for the government may lead to slow implementation. FocusEconomics panelists see the economy contracting 2.6% in 2016, which is down 0.8 percentage points from last month’s forecast. For 2017, the panel sees the economy rebounding and growing 0.9%.
Brazil Economic News
February 2, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) gained back some lost ground in January, rising from December’s 45.6 to 47.4.
January 28, 2016
Business sentiment improved in January according to the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) business confidence indicator.
January 27, 2016
In January, the consumer confidence index published by the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) rose a seasonally-adjusted 3.8% over the previous month, which contrasted the 3.0% decrease recorded in December.
January 26, 2016
Brazil’s current account deficit declined notably last year, coming in at USD 58.9 billion for 2015.
January 20, 2016
At its 20 January meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to leave the benchmark SELIC interest rate unchanged at 14.25%.