Private economists surveyed by Brazil’s central bank say they expect the country’s economy to shrink 0.57 percent this year, a more optimistic forecast than that of the World Bank, which calls by a 1.1 percent fall in Brazilian GDP.

The results of the central bank’s weekly Focus survey and the latest World Bank projections were both released Monday.

For the sixth consecutive week, economists at 100 leading Brazilian financial institutions said that Latin America’s biggest economy will experience a recovery in 2010, with a 3.5 percent increase in gross domestic product.

The private sector analysts predicted inflation of 4.4 percent this year, down from 5.9 percent in 2008, and a trade surplus of $20.8 billion, compared with $24.74 billion last year.

Brazil will receive $24 billion in foreign direct investment in 2009, a big drop from last year’s record total of $45 billion, the economists said.

Also Monday, the Brazilian government released figures showing that the formal economy created a net 131,557 new jobs last month, the best showing since last September.

Though unemployment has continued to rise, from 8.2 percent in January to 8.9 percent in April, the comparatively healthy figure for job creation in May may indicate that the worst of the recession is over for Brazil.

May was also the first month this year to see job gains across the three major economic sectors: industry, agriculture and services, the Labor Ministry said.

Brazil’s formal economy lost roughly 800,000 jobs between October and February. EFE

SOurce: LAHT

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Links referenciados

LAHT
www.laht.com