Weekly Report - 18 March 2010 (WR-10-11)

BRAZIL | GDP. Brazil's GDP fell by 0.2% in 2009, compared with a year earlier, according to figures from the official statistics agency (Ibge) presented by finance minister Guido Mantega last week. This was the first negative growth since 1992. The central bank's latest poll with market participants put GDP growth forecast for 2010 at 5.5%, compared with Mantega's forecast for 5.7% growth. Inflation is expected to reach 4.99% this year, above the bank's 4.5% target, leading the market to forecast the base interest rate will rise by 2.5 percentage points, to close 2010 at 11.25% annually.