On August 15, Brazil’s Central Bank disclosed that the Brazilian financial market rose from 1.98% to 2% its forecast for Gross Domestic Product (GDP) growth in 2022 and from 0.4% to 0.41% for 2023.
According to the Focus survey conducted by the central entity among the country’s leading financial institutions, the economic growth expectation four weeks ago was 1.75%.
Regarding inflation, the Brazilian market also reduced the estimate, which changed from 7.11% to 7.02% at the end of 2022, the seventh consecutive weekly reduction, in addition to changing from 5.36% to 5.38% for 2023.
In both cases, the official target is 3.5% inflation in 2022 and 3.25% next year, with 1.5 percentage points of tolerance.
For the Selic basic interest rate, which currently stands at 13.75% per annum, the market expects it to remain unchanged until the end of the year and then gradually decrease to close at 11% in 2023.
As for the Brazilian currency exchange market, which currently trades at R$5.11 per dollar, the forecast was placed at 5.20 units per U.S. currency at the end of the year and next year.
The trade balance estimate (exports and imports) was set at US$66.4 billion in 2022 and US$60 billion in 2023.
The forecast for foreign direct investment inflows to Brazil was set at US$58 billion in 2022 and US$65 billion in 2023.
With information from Xinhua