Brazil economists cut their 2014 economic growth forecast for the third straight week, as consumer confidence in the world’s second-largest emerging market plunges to the lowest level in nearly five years.
Brazil’s gross domestic product will expand 1.67 percent this year, compared with the previous week’s forecast of 1.79 percent, according to the Feb. 21 central bank survey of about 100 analysts published today. Economists also cut their 2015 growth estimate to 2 percent from 2.10 percent last week.
President Dilma Rousseff’s administration has been forced to shift economic policies, as stimulus measures and increased public spending last year fanned consumer prices without spurring growth. Officials on Feb. 20 said they would cut billions in spending to slow inflation and cut debt. Central bank President Alexandre Tombini said last week that boosting the benchmark rate by 325 basis points is working, and added that fourth quarter growth will be positive.
Read full article…