Brazil economists boost 2007, 2008 growth estimates

Brazilian economists raised their 2007 and 2008 economic growth forecasts in a weekly central bank survey on expectations that the current turmoil in global credit markets won't hurt Latin America's biggest economy.
Economists increased their economic growth forecasts for 2007 to 4.64 percent and for 2008 to 4.4 percent, up from 4.62 percent and 4.35 percent respectively in the previous week's survey, according to the median estimate of about 100 economists in an Aug. 24 central bank survey published today.
``The scenario they are predicting is very optimistic,'' said Fernanda Feil, an economist at Rosenberg & Associates Inc., an economic consulting company in Sao Paulo. ``It seems that the Brazilian economy won't be so affected by the crisis.''
Economists boosted their forecast after Brazil's currency and benchmark stock index rallied last week as concern eased that losses in global credit markets will curb economic growth and erode demand for the country's commodity exports. Brazil's real last week had its first weekly gain since mid-July.
Economists cut their trade surplus forecast for 2007 to $42.7 billion from $43 billion a week earlier, according to the survey, while holding their forecasts for the benchmark interest rate and exchange rate for this year and next were unchanged.
Economists raised their forecast for inflation this year to 3.86 percent from 3.77 percent a week earlier, the survey showed. The central bank targets inflation of 4.5 percent.
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