Brazil’s Federal Government cut its forecast for gross domestic product (GDP) output for this year and raised its inflation outlook for 2015, Brazilian news outlet Agência Brasil reported.

The Government expects a 1.49-percent contraction in GDP this year, a faster pace than the 1.2-percent decline it had previously estimated.

The Federal Government also expects the country’s inflation to reach 9 percent this year, an increase on its previous estimate of 8.26 percent.

The fresh economic projections were published in an official report released on Wednesday. Such updates are issued every two months.

Brazil’s Finance Minister, Joaquim Levy, said – as quoted by Agência Brasil – that external factors have had an influence on the domestic rate of economic contraction. He added that tax changes introduced by the Government have not had the effect of slowing the economy.

“Instead of raising taxes, we are looking for revenues that come out of creating more opportunities,” the Minister said, citing the example of a rise in Government revenues obtained by issuing fresh concessions to the business sector.

Mr Levy recalled past economic crises the country had faced, suggesting that recovery on this occasion could be “very significant” one-and-a half-years from now.