Brazil: Expectations Lowered

Economists have lowered their expectations for Brazil’s GDP growth this year from 3.27 to 3.12 percent, according to a central bank survey. Brazil’s economy grew only 0.3% in the first quarter compared with the previous quarter, and rose at a weaker-than-expected annual rate of 2.9 percent. The central bank has raised its benchmark interest rate continuously over the last nine months in an effort to rein in inflation. For 2006, GDP growth forecasts remain at 3.50 percent.