Brazilian economy likely to expand 0.8 pct in 2017, to accelerate to 2.4 pct in 2018 – Danske Bank

The Brazilian economy had recorded its first positive growth in three and a half years in the second quarter of this year. The economy had grown 0.4 percent year-on-year. It expanded further in the third quarter, growing 1.4 percent. The Brazilian economy was underpinned by growth in agriculture and improved private consumption. According to a Danske Bank research report, the Brazilian economy is expected to grow 0.8 percent in 2017.

With the global economic growth accelerating and recovery in Brazil’s private consumption on record-low inflation, the economy is expected to expand 2.4 percent yearn-year next year and 2.5 percent in 2019, as upside risks to the forecasts continue to be on possible improvement in domestic politics and monetary easing effect.

The major sentiment driver continues to be political turbulence, attributed to the allegations against the President, Michel Termer, dragging the possibility of passing the social security reforms and on economic confidence. Yet, the nation’s government is willing to proceed with the pension reform next year, in spite of the recent vote delay, stated Danske Bank.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest