Brazil's economy is expected to shrink this year and inflation is projected to come in more than a full percentage point below the central bank's target, according to the latest weekly central bank survey of economists on Monday.

Latin America's largest economy is expected to contract by 0.48% in 2020, according to the average forecast in the central bank's weekly FOCUS survey of over 100 economists, sharply down from growth of 1.48% the week before.

The dramatic deterioration, which has pushed growth, inflation and interest rate expectations to new lows, comes as large parts of business and civic life across the country have essentially shut down due to the coronavirus.

The government and central bank have both revised their 2020 growth forecast to zero. Some economists fear the economy could experience its biggest crash on record this year. 

Economists in the FOCUS survey lowered their 2020 inflation outlook to 2.94% from 3.04% the week before, which would be significantly below the central bank's 4.00% target. They also trimmed their 2021 forecast to 3.57%.

The end-year interest rate forecast was lowered to 3.50% from 3.75%, the current level of benchmark rates, and next year's forecast was reduced to 5.00% from 5.25%.