Brazil 2016 GDP Growth Est. Cut to 0.6% From 0.8%: Credit Suisse

2015 est. cut to -1.8% from -1.3%, analysts including Nilson Teixeira write in report.

  • See GDP -2.4% y/y in 2Q15, -2.0% y/y in 3Q15, and -1.3% y/y in 4Q15
  • Vehicle sales drop, decline in business confidence, expected contraction in industrial production, deterioration in labor market conditions, and bank lending deceleration signal 2Q GDP to be even weaker than 1Q
  • Expectation of greater contraction in activity in 2015 reduces the carryover of GDP growth from 2015 to 2016
  • Credit Suisse says other possible scenarios for 2016 GDP are 1% contraction or 1.2% growth
  • NOTE: Brazil Economy Shrinks Less Than Estimated in First Quarter: Link

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