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Brazil’s Growth Forecast Falls Off a Cliff on Strike, Uncertainty

  • Economists cut 2018 GDP estimates for seventh week to 1.76%
  • Political uncertainty and trucker strike hurt economic outlook
Vendors sort vegetables at the Companhia de Entrepostos e Armazens Gerais de Sao Paulo (CEAGESP) produce wholesale warehouse in Sao Paulo, Brazil, on Thursday, May 24, 2018.
Vendors sort vegetables at the Companhia de Entrepostos e Armazens Gerais de Sao Paulo (CEAGESP) produce wholesale warehouse in Sao Paulo, Brazil, on Thursday, May 24, 2018.Photographer: Rodrigo Capote/Bloomberg
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Brazil’s growth forecasts fell for a seventh consecutive week as economists assessed the impact of a nationwide trucker strike, growing emerging market turbulence and domestic uncertainty ahead of the October presidential election.

Economists in a weekly central bank survey lowered their 2018 estimate for gross domestic product to 1.76 percent, the lowest level for the year since President Michel Temer took office in May 2016 and fulled hopes of faster economic recovery.