BRAZIL: Government Raises Economic Growth Forecast For 2017 And 2018

(RTTNews) - The Brazilian government upgraded its forecasts for the country's economic growth in 2017 and 2018, amid "increased confidence" among consumers and companies, which had a favorable impact on spending, said the Brazilian Finance Minister, Henrique Meirelles.

The Brazilian economic growth should reach 1.1% in 2017 and 3.0% in 2018. The previous forecasts were at 0.5% and 2.0%, respectively.

The new projection for 2018 growth is higher than the 2.5% expansion used as a benchmark for the 2018 budget. Analysts surveyed by the Brazilian central bank estimate a 2.6% growth for 2018.

Meirelles said that companies and households are reducing their indebtedness, while interest rates in Brazil are dropping. Last week, the country's central bank cut the benchmark interest rate to 7% per year - a record low.