Brazil: GDP growth revised down – Rabobank

FXStreet Team FXStreet

Brazil’s GDP increased in line with market expectations but below Rabobank’s forecast. Analysts at the Dutch institution are lowering their GDP growth forecast for the South American country. USD/BLR trades at 4.583.

Key quotes

“Brazil’s 2019 GDP growth of 1.1% (street: 1.1%; Rabo: 1.2%) still denotes a gradually recovering economy.”

“In 19Q4, Brazil’s GDP expanded by 1.7% y/y, in line with our forecast (vs street’s 1.6%), but only by 0.5% q/q (Rabo: 0.7%; street: 0.5%).

“The negative investment surprise in today’s release, coupled with Covid-19 jitters, prompted us to revise our 2020 GDP growth forecast down to 1.8% (from 2.0%).”

“We still expect looser financial conditions to prop up the economy in 2020, ensuring growth.”

Author

FXStreet Team

FXStreet

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