GS’s opinion on recent retail sales in Brazil:
“Negative and weaker than expected. Although we were pessimistic about RS, we worry that the economy and domestic demand are decelerating faster than we expected. The drop in production of corrugated cardboard is evidence that activity continues to slow in September.Remember that last week we reduced our forecasts for real GDP growth for 2011 and 2012 to 3.5% and 3.3%, respectively. This envisaged growth at 0.7% in 3Q2011. As the data for September comes in, we believe that the risk to the forecast for 3Q is toward zero, thus introducing a downside risk to our revised forecasts for growth.”
Share →