Brasília, 7/28/2003 (Agência Brasil - ABr) - The financial market remains in a bad mood when the subject is GDP growth. The Central Bank's weekly survey of investors and analysts (Focus) found that expectations for GDP growth have fallen once again, down from 1.59% to 1.55%. At the same time, market estimates are that the country's basic interest rate (Selic), now at 24.5% annually, will be at 20% at the end of the year.

The survey also found that while market estimates for inflation as measured by the Broad Consumer Price Index (IPCA) continue at two digits, they have fallen slightly for the eighth consecutive week, down from 10.62%% to 10.13%. The IPCA is used by the government to gauge its inflation targets. As for next year, the forecast is for the IPCA to rise 6.50%. And the forecast for the next 12 month period is for the IPCA to rise the same, 6.50%, down from a forecast of 7.04% in the last survey.

The market estimate for the debt/GDP ratio worsened slightly, rising from 54.90% to 54.95%.

As for Brazil's foreign accounts, forecasts have not improved. Estimates for total direct foreign investments for the year remain steady at US$9 billion. The market estimates for the current account deficit also remained steady at US$3 billion. But market estimates for the trade surplus rose from US$17.3 billion to US$17.4 billion. (AB)