The latest weekly survey of market expectations by the Central Bank (the Focus survey) found a higher level of optimism regarding growth. The market says the industrial sector should grow 6.09 percent this year and that GDP growth will be 3.97 percent, up from 3.92 percent a week ago. The market continues to believe in 2005 GDP growth of 3.5 percent.
With regard to year-end inflation, as measured by the IPCA, market expectations are slightly on the rise. Last week expectations were at 7.16%; this week they were at 7.19%.