Analysts in Brazil have revised their 2023 growth outlook upward, following better-than-expected GDP growth in the second quarter.
According to a weekly survey by the central bank released on Monday, the economy is now expected to grow by 2.56% this year, up from the previous forecast of 2.31%.
For 2024, the GDP is projected to rise by 1.32%, a small dip compared to last week’s estimate.
The GDP increased by 0.9% in the period from April to June, driven by a robust service sector and a strong job market.
This followed another quarter that exceeded expectations earlier in the year, fueled by a rich harvest.
Major banks, such as Bank of America Corp., are now predicting growth rates close to or at 3% for 2023.
This is over three times the rate most analysts forecasted in January.
The impressive economic figures have boosted the popularity of President Luiz Inácio Lula da Silva.
His approval rating reached 60% in August, a 9% increase from April, according to the polling firm Quaest.
Both supporters and critics of the left-leaning leader, who campaigned on restoring prosperity, have found reason to approve of his performance.
Brazil’s economic trajectory has seen its fair share of ups and downs over the years.
From its colonial era to its emergence as an independent nation in the early 19th century, Brazil’s economy has been shaped by factors like agriculture, trade, and industrialization.
In the late 20th century, the country faced hyperinflation and economic instability, prompting efforts to stabilize the economy through various reform measures.
The turn of the century marked a period of relative economic growth and stability, with Brazil becoming one of the BRICS countries alongside Russia, India, China, and South Africa.
However, the global financial crisis of 2008 did impact the Brazilian economy, leading to a slowdown in growth.