Brazil’s growth forecast axed further, this time by OECD

It seems bottom to the Brazil's growth forecast is nowhere near, with every analyst forecasting it a bit further down.

This week alone, analysts at Barclays downgraded Brazil's growth forecast to contraction of -3.2%, compared to growth forecast of 1.1%.

Now, a heavyweight, Organization of Economic Cooperation and Development (OECD) has joined in the fray by downgrading Brazil's forecast to contraction of 2.8% this year and -0.7% in next. In June it had expected positive growth in Brazil in 2016.

Brazilian Real is already worse performing emerging market currency this year and analysts are expecting further slide as FED reserve will hike rates.

Chances are rising that incumbent president Dilma Rouseff, would have to resign her presidency as protest are intensifying across Brazil. Brazilian Real is showing as of now no turning back.

Brazil's central bank has given a pause to rate hike in September after seven consecutive rise, however many analysts complained that the bank has moved too slowly to reign over inflation and Real weakness.

Brazilian Real is currently trading at 3.84 against Dollar, expect further weakness in the currency.