Economists Reduce Outlook for Brazil Inflation in 2017 - Survey

By Rogerio Jelmayer

SAO PAULO--Economists reduced their estimates for inflation in Brazil for next year, according to the central bank's weekly survey of 100 economists published Monday.

Economists now expect inflation, as measured by the consumer-price index, to rise 5.12% in 2017, compared with estimates of a 5.14% rise last week, the survey showed.

For this year, economists maintained their view for an inflation increase of 7.31%.

Meanwhile, economists kept their outlook for the year-end Selic benchmark interest rate at 13.75% for the end of 2016 and 11% for the end of 2017.

Economists estimate Brazil's gross domestic product is likely to contract 3.20% this year, the same level seen in last week's survey. Last year, Brazil's economy contracted 3.80%, according to the country's statistical bureau, IBGE.

For 2017, economists raised their view of a GDP expansion to 1.20% from 1.10%.

They also maintained their expectation for Brazil to post a $50 billion trade surplus this year.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

August 22, 2016 08:00 ET (12:00 GMT)

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