HALISTER1: Brazil 2018 GDP Growth Est. Raised to 4.1% From 3.7% at Fibra

Brazil 2018 GDP Growth Est. Raised to 4.1% From 3.7% at Fibra

(Bloomberg) -- The rising chances of Brazil’s GDP growing above 4% are mainly due to the impact of the low real interest rates in the coming quarters, says Fibra in a report signed by Cristiano Oliveira and Ágila Cunha.
  • Bank says there are five other main reasons:
    • Continuation of the synchronized growth scenario between developed markets and China;
    • Continued improvement of confidence indexes (industry, services, construction);
    • Higher than anticipated disinflation with direct impact on household disposable income and consequently consumption decisions;
    • Resumption of credit market in an environment where households and businesses have deleveraged strongly;
    • Recalculation of parameters of econometric models that show increased monetary policy effectiveness through traditional channels
  • Fibra also raised Brazil’s 2017 GDP estimate from 0.7% to 0.8%
To contact the translator on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the translation editor responsible for this story: Priscilla Murphy at pmurphy134@bloomberg.net Reporter on the original story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net Editor responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Cristiano Oliveira (Banco Fibra SA)

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