SAO PAULO: Economists slashed forecasts for Brazil's economic growth this year following a weaker-than-expected first-quarter performance of the gross domestic product, according to a weekly central bank survey published on Monday.
Economists also revised up their forecasts for end-year interest rates after the central bank hiked them by 50 basis points last week, more than expected by many analysts.
Brazil is expected to grow 2.77 percent this year, according to the median forecast of about 100 economists, down from an estimate of 2.93 percent in the prior week. Interest rates were seen ending the year at 8.50 percent, up from a forecast of 8.25 percent seen in the prior week's survey.
Brazil's economy expanded 0.6 percent in the first quarter, compared with the fourth quarter, less than the 0.9 percent forecast by economists.
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