Brazil Seen In V-Shaped Bounce

HSBC has lowered its forecast for 2009 GDP growth in Brazil to a 0.3% contraction from 0.1% growth, citing its expectation of lower levels of gross fixed investment and a slight drop in household consumption. The shop cut its outlook for gross fixed investment to an 8.7% contraction from a 6.0% reduction. It also cut household consumption to growth of 0.7% from 0.9%. For 2010, however, HSBC does the opposite. It now forecasts the economy will grow by 4.1%, an increase over its previous estimate of 2.6%.The shop also hikes its forecast for the 2009 trade balance to a $23.5bn surplus from $20.0bn, and improves its current account deficit forecast to $15.5bn from $17.9bn.