Rio, March 11, 2004 (Agência Brasil - ABr) - According to the quarterly conjuncture bulletin released by the Institute of Applied Economic Research (Ipea), the projected GDP (Gross Domestic Product) for 2004 has been lowered from 3.6% to 3.4%. Inflation as measured by the Broad Consumer Price Index (IPCA) is expected to reach 5.7% at year's end. In the previous bulletin, issued in December, the Ipea predicted an IPCA of 6.1%.

The Institute also revised its forecast for the trade balance surplus. In December, the estimate was for it to reach US$ 19.5 billion. In the current bulletin this forecast is raised to R$ 23.1 billion. There was also an improvement in the forecast for the current transactions deficit, from minus US$ 3.9 billion, in December, to minus US$ 1.4 billion. (DAS)