Brazil: GDP growth revised down – Rabobank

Brazil’s GDP increased in line with market expectations but below Rabobank’s forecast. Analysts at the Dutch institution are lowering their GDP growth forecast for the South American country. USD/BLR trades at 4.583.

Key quotes

“Brazil’s 2019 GDP growth of 1.1% (street: 1.1%; Rabo: 1.2%) still denotes a gradually recovering economy.”

“In 19Q4, Brazil’s GDP expanded by 1.7% y/y, in line with our forecast (vs street’s 1.6%), but only by 0.5% q/q (Rabo: 0.7%; street: 0.5%). 

“The negative investment surprise in today’s release, coupled with Covid-19 jitters, prompted us to revise our 2020 GDP growth forecast down to 1.8% (from 2.0%).” 

“We still expect looser financial conditions to prop up the economy in 2020, ensuring growth.”