The markets in Brazil expect 6.48% contraction of GDP in 2020

The markets in Brazil expect that the GDP will contract by 6.48% in 2020, a focused survey shows. The Brazilian central bank conducts the survey among 140 entities, including financial institutions, consultancies and brokerages. This is the 17th week in a row when the indicator is revised downwards. A week earlier, the markets expected a 6.25% decline I GDP. 

The COVID-19 pandemic in Brazil prompted many companies and local governments to adopt social distancing measures that froze economic activity since mid-March. The continuation of these measures up until the second week of June had a strong negative impact on the economic indicators of April and May. Consequently, many economists predict the ever-worsening GDP contraction in 2020.

Sign in for further data and analysis on Brazil’s economy on the CEIC Brazil Economy in a Snapshot – Q2 2020 report.