BRASILIA (Reuters) – Brazil’s economy will shrink by 7.7% this year, according to new forecasts from economists at Bank of America, a sharp revision from their previous call of a 3.5% contraction and one of the gloomiest outlooks yet for Latin America’s largest economy.
Brazil’s government will likely post a record primary budget deficit worth 9.3% of gross domestic product this year due to crisis-fighting spending measures and a huge drop in tax revenue, they added.
(Reporting by Jamie McGeever; Editing by Chizu Nomiyama)
