Survey upgrades Brazil's growth forecast for 2014 first time in 5 months

Brazilian analysts have upgraded the country's economic growth forecast for 2014 from 0.24 percent to 0.28 percent for the first time in nearly five months, Brazil's leading news website G1 reported Monday.

Boletin Focus, a weekly Central Bank survey of analysts from 100 financial institutions, showed a slight increase in expectations for the annual growth of gross domestic product.

It marked the first increase of expected economic growth after 19 consecutive weeks of downward forecasts.

For 2015, the Central Bank survey maintained its growth forecast at 1 percent.

Meanwhile, it forecast the inflation would rise from 6.32 percent to 6.45 percent for 2014, and be at 6.3 percent for 2015, both within the margin of the official target rate.

The basic interest rate, currently at 11 percent, is expected to end the year unchanged, but to register an average rate of 11.88 percent at the end of 2015.

The currency exchange rate is also foreseen to stay unchanged at the end of this year, at 2.4 Brazilian reals against one U.S. dollar, but to close 2015 at 2.5 reals.

The trade surplus expectation rose from 2.14 billion dollars to 2.44 billion for 2014, and from 7.24 billion to 7.27 billion for 2015.

Expected foreign direct investment remained at 60 billion dollars for this year, but was raised from 57.7 billion dollars to 59.2 billion for 2015.

The upward adjustment came less than a week after the International Monetary Fund (IMF) cut Brazil's economic growth forecast for 2014 to 0.3 percent, one full percentage point lower than its previous forecast.

The IMF cited weak investment activity and competitiveness, and moderate consumption for its adjustment motivation.