|For the fifth consecutive week, Brazilian financial analysts reduced their estimates for the Brazilian economic growth this year.
Local market sentiment poll – Focus Report
According to the Focus report, released by the Brazilian Central Bank the forecast 2011 GDP (Gross Domestic Product) fell from 3.29% to 3.20%.
The same happened in the inflation projection this year, which stood at 6.50%; the government’s target ceiling. Currently, the Selic rate is 11.50% per year. Exchange rate forecasts were not altered, thus R $ 1.75 per dollar.
Foreign direct investment expectations for 2011 remained stable at U.S. $ 60 billion, while for 2012 the inflow of investments in Brazil went up from 52 to $ 53 billion.
Industrial production index: not good
Global turbulence is halting the Brazilian industry production more then expected. Analysts are disappointed with industrial production in September. The index fell a stronger-than-expected 2.0% and weakness was spread across sectors. September’s industrial result suggests hardly any GDP growth at all in the third quarter and a 3% forecast is now considered optimistic by Itau Unibanco research.