Morgan Stanley Hikes Brazil Forecasts

Morgan Stanley predicts Brazil’s GDP will shrink by 0.5% in 2009, from a previous estimate for a 1.0% drop. In 2010, the shop forecasts the economy will grow 3.5%, an adjustment from its previous call for growth of 2.5%. Morgan Stanley sees the BRL ending the year at BRL1.90, stronger than its previous forecast of BRL2.10. However, it cut its BRL forecast for year-end 2010, when it sees it at BRL1.8 per USD from a previous estimate of BRL1.9.