RIO DE JANEIRO, BRAZIL – Despite the downgrade, Brazil’s projected economic growth for this year is still more optimistic than the 0.49% increase seen by markets.
Brazil’s Economy Ministry will revise its official forecast for economic growth this year to about 1.5% from 2.1%; two government sources told Reuters on Wednesday, March 16.
The sources, who spoke on anonymity, said the revised figure should be released on Thursday, March 17, when the Economic Policy Secretariat will update its forecast.
Despite the downgrade, projected GDP growth for 2022 is still more optimistic than the 0.49% increase seen by markets, according to a weekly survey of more than 100 economists released by the central bank.
Economy Minister Paulo Guedes has repeatedly said that Brazil will surprise analysts, with rising private investment and an improving labor market mitigating the adverse effects of inflation and rising interest rates, even against global uncertainties over Russia’s military operation in Ukraine.