Brazil lowers growth and inflation projections for 2015

Rio de Janeiro, Sep 23 (IANS/EFE) The Brazilian government on Wednesday forecast a 2.44-percent fall in gross domestic product (GDP) and an inflation of 9.29 percent in 2015.

A bi-monthly report of Brazil’s planning ministry said the situation was worse than the last prediction, which forecast a contraction of 1.49 percent and nine percent inflation.

It is, however, higher than the weekly projections by financial market analysts, published by the Central Bank on Monday that predicted the GDP would shrink 2.70 percent in 2015.

The economists also reduced their inflation prediction to 9.34 percent.

Both forecasts double the official inflation target of 4.5 percent and exceed the maximum ceiling of 6.5 percent imposed by the government.

Brazil is in technical recession following two quarters of negative growth between January and June.

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