Brazil Government Cuts 2013 Growth View To 2.5% From 3%
BRASILIA--Brazil's government reduced its official forecast for the country's economic growth in 2013 to 2.5% from 3.0% to reflect slower-than-expected growth in the first half of the year, the Planning Ministry said Friday.
Despite the reduced growth projections, the ministry raised its projections for federal revenues and for federal spending in 2013 by 4.7 billion Brazilian reais ($2.12 billion) each.
As part of that revision, the government raised its projection for revenues from infrastructure and natural resource development concessions by BRL850 million for the year. The government plans to hold bidding auctions for high-profile transportation and oil development projects in the second half.
The government, meanwhile, held projections for other key macroeconomic variables unchanged for the year.
Brazil's IPCA consumer price index inflation is seen ending the year at 5.7%. The country's benchmark Selic interest rate is seen averaging 8.2% over the year in 2013, while the foreign exchange rate is seen averaging BRL2.09 to the dollar.
The latest projections were part of the ministry's fourth bimonthly revision of its 2013 budget estimates.
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