Market improves GDP forecast in 2020, but still sees 5.52% drop

Economists consulted by the Central Bank improved the forecast for GDP (Gross Domestic Product), the sum of all goods and services produced in the country, this year.
The market, which last week predicted a 5.62% drop for the economy, now sees a slightly smaller pullback of 5.52%.
The expected drop in the Brazilian economy takes into account the negative impacts of the coronavirus pandemic, which caused the closure of several activities in the country.
The forecast for inflation at the end of the year was high, while projections for the basic interest rate (Selic) and the dollar were maintained.
Below are economists' forecasts for the end of 2020 released today in the Central Bank's Focus Bulletin:
- GDP: went from -5.62% to -5.52%
- Inflation: from 1.63% to 1.67%
- Dollar: held at R$ 5.20
- Selic: maintained at 2%