By Rogerio Jelmayer

SAO PAULO--Economists again lowered their outlook for Brazil's economic performance in 2016 and 2017, as the effects of a deep recession persist in Latin America's largest economy.

Brazil's gross domestic product is expected to shrink 3.49% this year, according to a weekly central-bank survey of 100 economists, compared with expectations a week ago for a 3.40% contraction. This marked the eighth consecutive downward revision.

Last year, Brazil's economy contracted 3.80%, according to the country's statistical bureau, IBGE.

For 2017, economists lowered their forecast of the country's economic expansion to 0.98% from 1%, marking the sixth consecutive reduction.

Economists also cut their estimate for the inflation rate in 2016, as measured by the consumer-price index, to 6.72% from 6.80%.

According to the central-bank survey, economists maintained their outlook for the year-end Selic rate at 13.75% for 2016 and at 10.75% for 2017.

They also forecast Brazil to post a $47 billion trade surplus this year, down from the $47.42 billion expected in the previous week's survey.

Write to Rogerio Jelmayer at

(END) Dow Jones Newswires

November 28, 2016 06:01 ET (11:01 GMT)

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