We have revised down our 2013 real GDP growth forecast to 2.0%, from 2.6% previously, as economic activity data remains weak, interest rates are set to continue heading higher, and our Infrastructure team increasingly believes that numerous projects are unlikely to be completed in advance of the end of the government’s PAC II growth acceleration programme and the FIFA World Cup in 2014. Our core view for relatively weak private consumption remains in play. High household debt levels and weaker purchasing power (exaggerated by the recent collapse in the currency) is likely to constrain private consumption growth considerably over the …
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