The Brazilian government has lowered its inflation forecast to 3.7 percent from 4.3 percent, Reuters reports.

The news agency says the government is sticking to its forecast of economic growth of 0.5 percent this year, having taken into account the recent estimates, which indicate less revenue from primary resources and greater spending by the public sector.

The latest report on Brazil by the International Monetary Fund predicts the economy will grow by 0.3 percent this year, 1.3 percent next year and 2 percent the year after.