Economic Recovery Should Be Slower, Say Economists

10/19/2016 - 11h31

 The end of the recession of the Brazilian economy, planned for the second half of this year, may be delayed. Recent data, weaker than expected from economic activity, have led economists to revise projections.

With the verified slump in industrial production and retail sales in August, many predict that the economy can repeat in the third quarter of this year the fall observed in the previous three months.

Bradesco has revised down for the second time the GDP (sum of the wealth produced) forecast for the period.

Economists of the bank expect a decrease of 0.8% in the third quarter. For the next three months, the projections moved to negative territory (-0.2%).

According to Goldman Sachs, the fiscal crisis of the states adds to the negative context for consumption and can affect the improvement in confidence.

But factors such as the latest drop in inflation and the likely rate cut scheduled on Wednesday (19) should boost the economy in 2017.

	Marcelo Camargo/ Agência Brasil
	The fiscal crisis of the states adds to the negative context for consumption and can affect the improvement in confidence

Translated by MARINA DELLA VALLE

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