BRASILIA, Brazil – Brazil's Central Bank has lowered its growth projection for 2012 to 1 percent in the latest sign of disappointment about economic performance.
Three months ago, the bank was predicting 1.6 percent growth this year. Earlier it projected 2.5 percent growth.
The bank's statement on Thursday blames the lackluster economic performance of industrialized nations and continued uncertainty in the eurozone.
A day earlier, Finance Minister Guido Mantega predicted a robust recovery in 2013, with projected growth of around 4 percent.
The Central Bank says that is credible if consumer spending is robust in the coming months.
The statement says inflation is likely to reach 5.7 percent by the end of the year, above the government's target of 4.5 percent.