As Brazilian economists downgraded last week their forecast for the nation’s GDP in 2016, expecting for the first time a decline in the indicator, analysts said this week the prospects for the country’s economy have worsened since then.
According to a report from Brazil’s central bank, the nation’s GDP should see a 0.24 percent decline in median terms. The expected GDP for 2016 in median terms was reduced for the first time last week to a 0.15 percent decline, as opposed to the 0.20 percent growth expected for the same indicator four weeks ago.
Along with the government’s expectations of a lower GDP in 2016, credit ratings agency Moody's said it expects a 2 percent decline in Brazil’s GDP in 2015 and a stagnant economy in the year to come.
The agency said the resumption of growth in the nation’s economy is only expected for 2017-2018 period. Moody’s said it expects an average growth of 2 percent in the two years. According to the agency, Brazil’s GDP should grow 1.5 percent in 2017 and 2.5 percent in 2018.