Brazil slashes 2017 growth forecast

AFP, BRASÍLIA: Brazil halved its 2017 economic growth forecast Wednesday, to 0.5 per cent from 1.0 per cent, indicating weaker confidence in a quick exit from the country's worst recession in history.
The government had already scaled back its 2017 forecast last November from 1.6 per cent. However, the finance ministry still remains bullish that Brazil's economy will rebound, predicting 2.5 per cent growth in 2018.
The less optimistic outlook for this year brings Brazil's government into line with market expectations, which are for 0.48 per cent growth in gross domestic product -- the broad measure of the economy's output -- and 2.5 per cent in 2018.
Finance ministry official Fabio Kanczuk said Brazil's fight back from more than two straight years of recession will bear fruit in the fourth quarter of this year when GDP growth will be 2.7 per cent higher than during the same period last year.
"This 2.7 per cent is more important" as a signal that the economy is "growing robustly," he said.

Brazil slashes 2017 growth forecast

AFP, BRASLIA: Brazil halved its 2017 economic growth forecast Wednesday, to 0.5 per cent from 1.0 per cent, indicating weaker confidence in a quick exit from the countrys worst recession in history. The government had already scaled back its 2017 forecast last November from 1.6 per cent. However, the finance ministry still remains bullish that Brazils economy will rebound, predicting 2.5 per cent growth in 2018. The less optimistic outlook for this year brings Brazils government into line with market expectations, which are for 0.48 per cent growth in gross domestic product -- the broad measure of the economys output -- and 2.5 per cent in 2018. Finance ministry official Fabio Kanczuk said Brazils fight back from more than two straight years of recession will bear fruit in the fourth quarter of thisyear when GDP growth will be 2.7 per cent higher than during the same period last year. This 2.7 per cent is more important as a signal that the economy is growing robustly, he said.