Brazilian market raises economic growth forecast for 2023 to 1.26%

The Brazilian financial market raised from 1.20 to 1.26 percent the estimate of Gross Domestic Product (GDP) growth for this year and maintained the forecast at 1.30 percent for next year, the Central Bank of Brazil announced today, Monday.

According to the Focus survey conducted by the central entity among the country’s leading financial institutions, market analysts lowered their inflation estimate from 5.80 to 5.71 percent at the end of 2023.

They maintained it at 4.13 percent for 2024.

Brazil’s official inflation target is 3.25 percent this year and 3 percent next year, with a tolerance margin of 1.5 percentage points.

Financial market analysts also maintained at 12.50 percent the basic Selic interest rate forecast for the end of the year. It will then gradually decrease to close at 10 percent in 2024, an indicator that now stands at 13.75 percent per annum.

Regarding the Brazilian currency exchange market, which trades at 5.01 reais per dollar, the projection was set at 5.11 units per US currency by the end of 2023 and 5.17 by the end of 2024.

As for the trade balance (exports and imports), the estimate was placed with a positive balance of US$ 60 billion this year and US$55 billion next year.

The estimate for foreign direct investment inflows to Brazil was placed at US$80 billion for both 2023 and 2024.

News Brazil, English news Brazil, economic news Brazil, economic growth 2023 Brazil, 

More: Brazil news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error