The Brazilian Ministry of Planning, Budget and Management has reduced its forecast of expansion in gross domestic product this year to 1.6 percent from 2.5 percent, Xinhua reports.

The Chinese government-run news agency attributes the reduction to a strike by truck drivers all over the country in May, less liquidity in markets around the globe, expectation that US interest rates will rise and greater uncertainty about the Brazilian domestic market.

However, the report quotes an official of the Brazilian Ministry of Finance, Fabio Kanczuk, as saying the economy is showing signs of recovery, and that growth next year could be faster.

The planning ministry has reduced its forecast of GDP growth next year to 2.5 percent from 3.3 percent.