BRASILIA, March 22 (Xinhua) -- The Brazilian government reduced its 2017 growth estimate from 1 percent to 0.5 percent, the Ministry of Economy said on Wednesday.
The new prediction is in line with those made by financial market analysts.
Despite this reduction, the government is maintaining its expectations that the country will exit recession in 2017, after negative growth of 3.8 percent in 2015 and 3.6 percent in 2016.
According to the ministry's statement, the GDP is expected to grow by 0.49 percent in the first quarter of 2017, and by 0.68 percent, 0.73 percent and 0.79 percent respectively for the other quarters of the year.
Should the projections hold true, the GDP growth in the fourth quarter of 2017 will be 2.7 percent higher year on year.
In the statement, Brazil's secretary of economic policy, Fabio Kanczuk, said that the fourth quarter of 2016 had seen negative growth, as companies had used resources to reduce levels of debt.
However, he said that the numbers showed the recession "has been left behind and the future will be better. They suggest growth will be greater ... this year."
According to Kanczuk, the country's economy is also in line to grow by 2.5 percent in 2018.
With this lower growth perspective, the government will take several fiscal measures, including a cut to this year's budget, the ministry said.
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