Bank of America cuts Brazil 2020 GDP forecast to -3.5% from -0.5%: report

SAO PAULO (Reuters) – Bank of America on Thursday cut its 2020 forecast for Brazil’s gross domestic product (GDP) to a 3.5% contraction from a 0.5% fall, it said in a report, citing the strong impact on consumption and investment stemming amid the coronavirus pandemic.

The bank also revised its forecast for the Brazilian foreign exchange rate, saying it now sees the U.S. dollar at 5.2 reais from 4.8 reais previously.

(Reporting by Gabriela Mello; Editing by Chizu Nomiyama)