Brazil’s central bank raised its 2020 gross domestic product growth forecast to 2.2% in its latest quarterly inflation report from 1.8% previously. Brazil's unemployment rate fell from 12.5 percent earlier in 2019 to about 11.8 percent in August.
The projection for Brazil's basic interest rate is that the current level of 4.50 percent will remain intact in 2020. Moreover, projections for Brazil's balance of trade foresee a positive balance of 44.50 billion dollars in 2019 and of 39.40 billion dollars in 2020.
Sales increase
With the expected growth in year-end sales, retail in Brazil goes through its best moment since the recession, and enters the new year with its best foot forward. In fact, Christmas sales have been at their highest since 2014.
The industry still has a long way to go. Between 2006 and 2012, the GDP of the construction industry rose by 62%. Between 2013 and 2018, it fell 30%. In 2019, it increased by 2% and it is expected to advance 3% in 2020, according to the Brazilian construction union Sinduscon.
Exports rise
Brazilian food processors are poised to boost pork and chicken exports in 2020 as Chinese demand for imports remains strong while the Asian country deals with severe disruptions in local production, an industry group said on Thursday.
Projected Brazilian chicken exports could grow to as much as 4.5 million tonnes next year, a 7% rise from the upper range of 2019 export projections of 4.2 million tonnes, ABPA said.
The 2020 market expects an acceleration of the pace for the economic recovery. According to the most recent result of Focus newsletter (a weekly publication from the Central Bank of Brazil) the prospects of the 100 main financial institutions; there will be an increase of 2.2%. This is the third week in a row when the forecast of the indicator has increased. Also, the 2019 GDP forecast, predicted by experts from the Central Bank, increased their estimate compared to last week. The expected growth is 0.99% at the end of this year.
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(Sources: Reuters and El Pais)
