• Categories
  • Archives

Brazil’s Economy Analysts Expecting Lower Inflation in 2006

There has been a small change in the market mood in Brazil regarding future inflation. For the first time in a number of weeks, the market forecast for inflation fell in the latest Focus market survey by the Brazilian Central Bank, which polls some 100 market analysts and financial institutions.

Last week the market forecast for the final increase in the Broad Consumer Price Index (IPCA) for 2006 was 4.61%. This week it was 4.60%. The government target for 2006 is for an IPCA increase of 4.50%.

This week’s Focus survey found that the market now expects the country’s benchmark interest rate, the Selic, to be 15% annually at the end of the year.

Focus also found that the market believes government-controlled prices (mostly utilities, gasoline and health plans) will rise 4.5% in 2006.

As for GDP growth, for the 39th consecutive week the market said it would be 3.5% in 2006.

Primary Surplus

The Central Bank has released a report on the economy. Up to the end of November, the government was running a primary surplus of US$ 4.5 billion; the equivalent of 5.6% of GDP (for the sake of comparison, the primary surplus target for 2006 is 4.25% of GDP, or approximately US$ 37.9 billion).

Joaquim Levy, the head of the Secretariat of the National Treasury, reports that the final 2005 result will be superior to the government’s target because all the players, both the states and the federal government, have surpluses above last year’s target which was also 4.25% of GDP.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil and Argentina in Search of a Fair Automotive Agreement

Brazil and Argentina plan to extend their Bilateral Automotive Accord, which regulates vehicle sales ...

Brazil’s Vice-President Accuses Lula of Having Pact with Devil

Brazilian Vice-President and Defense Minister. José Alencar, accused President Luiz Inácio Lula da Silva ...

Brazil Surplus Reaches US$ 36 Billion Despite Beef Embargo

Brazil’s trade surplus during the first ten months of 2005  surpassed the 2004 results, ...

Market and Government Agree: Brazil’s Inflation Won’t Top 4.5%

All signs point to a fourth straight year of declining inflation in Brazil. At ...

Brazil New-Found Oil Will Fund Education and Anti-Poverty Programs

The president of Brazil, Luiz Inácio Lula da Silva, announced today, August 31st, a ...

The Pediatrician of Us All

Doctor Rinaldo De Lamare’s A Vida do Bebê sold approximately 6 million copies in ...

Brazil Outraged by Suggestion that New Air Accident Is Matter of Time

The head of an international air traffic controllers organization who said that it was ...

Brazil Offers Credit Line to Small Businesses

Owners of small businesses in Brazil will soon be able to count on a ...

Brazil: The Shame of Being the World’s 7th Largest Economy

In the 19th century, Victor Hugo refused to shake hands with Pedro II, the ...

In Brazil, All Is Allowed… After the Elections

There are those in Brazil who believe that the government will propose in November, ...