BRASILIA, Sept. 24 (Xinhua) -- The Central Bank of Brazil upgraded its economic growth forecast for 2020, from a 6.4 percent contraction to a 5 percent contraction, the bank said Thursday in its Quarterly Report on Inflation.
Available indicators show that despite a sharp drop in economic activity in the second quarter, activity resumed at a faster rate than expected following the peak of the novel coronavirus (COVID-19) pandemic, according to the report.
"The new forecast takes into account strong growth in the third quarter, influenced by government measures to combat the economic impacts of the pandemic and the gradual return to the consumption levels in effect before the lockdown period," the report said.
For 2021, the bank forecast the gross domestic product (GDP) will grow by 3.9 percent, slightly more than that projected by the financial market, which is 3.5 percent.
"This outlook depends on a scenario of continued reforms and maintaining the current fiscal regime, ensuring the long-term balance of public accounts," the bank said.