Brazil will grow more than expected in 2022, says OECD

The Organization for Economic Cooperation and Development (OECD) raised its estimate for Brazil’s economic growth in 2022 to 2.5%.

This year’s Gross Domestic Product (GDP) growth forecast was almost 2 percentage points higher than the most recent estimate, from June.

Published on Monday 26, the report reduced the projection for the 2023 GDP by 0.4 percentage points.

Regarding the dynamics of prices, the OECD reported that the high level of Brazilian interest rates, combined with a cooling in the rise of energy costs, should reduce inflation “substantially” in 2023 compared to 2022.

The same effect should also happen in Mexico.

The latest weekly bulletin Focus, released by the Central Bank, showed a reduction in the inflation projection for this year for the 13th time in a row, to 5.88%.

According to Focus, companies, and investors expect that the Central Bank will keep interest rates at the current level of 13.75% per year until at least mid-2023, to put downward pressure on inflation.

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