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06 Dec 2018, Radoslav Yordanov, EMIS Editor

Fitch keeps 2018 and 2019 growth forecasts for Brazil

Fitch kept its 2018 growth forecast for Brazil unchanged at 1.3%, CEEMarketWatch reported. The rating agency also held its projection for 2019 at 2.2%.

The credit rater said that this year country’s economic recovery was negatively impacted by the May truckers’ strike and the uncertainties regarding the presidential elections. It noted however that Brazil’s GDP expanded in Q3 driven by strong investment, consumption and exports.

Fitch commented that a further recovery will depend on the successful implementation of structural reforms. It warned that the biggest risk is related to an eventual disappointment with new government economic agenda could hurt confidence and economic activity in the country. On the other hand Argentina’s crisis and lower commodity prices are the main external risk for Brazil, according to the credit agency.

Finally Fitch forecasted that inflation would close this year at 4.1%, 0.4% below central bank’s target.

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