Rio, 9/5/2003 (Agência Brasil - ABr) - The Applied Economic Research Institute (Ipea) has reduced its forecast for GDP growth this year from 1.6% to 0.5% in its latest bulletin.

With regard to next year, the Ipea has increased its forecast from 3% to 3.5% for GDP growth.

As for inflation, Ipea says it should close out this year at 9.2% (compared to 11.5% in its prior bulletin).

Finally, Ipea now says the trade surplus this year should reach US$19.3 billion, compared to US$17.2 billion in its prior bulletin. (AB)