World Bank raises GDP forecast for Brazil to 1.2% in 2023

The World Bank has raised its forecast for Brazil’s GDP (Gross Domestic Product) growth from 0.8% to 1.2% in 2023. The projection is included in the Global Economic Prospects report, released Tuesday (June 6, 2023).

Despite the improvement in 2023, the World Bank reduced, from 2% to 1.4%, the growth projections for the Brazilian economy in 2024, compared with the previous report released in January.

For 2025, the multilateral organization estimated an expansion of 2.4%.

Issued twice a year, the report lists the World Bank’s estimates for the performance of economies worldwide.

According to the organization, despite the improvement in some Latin American countries, this year’s economic growth will be sustained mainly by exports against a backdrop of difficulties caused by persistently high domestic inflation and rising interest rates.

For the global economy, the international organization raised its growth estimate from 1.7% to 2.1%.

According to the World Bank, the United States and other major powers are proving resilient to central banks’ increased basic interest rates.

Even with the improvement, the World Bank estimate represents a slowdown in relation to 2022, when the global economy grew by 3.1%.

For 2024, the report decreased the growth forecast from 2.7% to 2.4%. According to the international organization, high-interest rates will have effects next year through the fall in commercial and residential investments.

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