Brazil's 2014 growth forecast further lowered

Brazilian financial analysts have cut their economic growth projection for 2014 to between 0.7 percent and 0.52 percent, according to a poll released Monday by Brazilian Central Bank.

The forecast is below the previous prediction of 0.86 percent published four weeks ago.

The bank's Focus poll of the nation's leading financial institutions represents the 14th consecutive downward adjustment in projected gross domestic product growth (GDP).

Projected growth for 2015, which previously stood at 1.5 percent, was also cut to between 1.2 percent and 1.1 percent.

The new forecast followed last week's announcement by the Brazilian Institute of Geography and Statistics (IBGE) that the country's GDP contracted by 0.6 percent in the second quarter compared with the previous three months, and by 0.9 percent year on year.

Industrial production in 2014 is expected to see a contraction of 1.76 percent to 1.7 percent, but to expand 1.7 percent in 2015.

Inflation in 2014 and 2015 would register 6.27 percent and 6.29 percent respectively, falling into the government's target range of 4.5 percent with a two-percentage-point wiggle room.

The basic interest rate in 2014 would remain at the current level of 11 percent annually, but is expected to rise to between 11.75 percent and 12 percent annually in 2015.

This year's trade surplus is expected to stand at 2.17 billion U.S. dollars and at 9 billion in 2015.

The Focus poll also projected foreign direct investment of 60 billion dollars in 2014, and of 56 billion dollars in 2015.H The Brazilian real-U.S. dollar exchange rate forecast remains unchanged at 2.35 reals to the dollar by the end of 2014.