Brazilian market raises economic growth forecast to 1% in 2023
The Brazilian financial market raised from 0.96 to 1.00 percent the estimate of Gross Domestic Product (GDP) growth for this year and maintained the forecast at 1.41 percent for next year, the Central Bank of Brazil disclosed yesterday, Tuesday.
According to the Focus survey conducted by the central entity among the country’s main financial institutions, the market estimate for inflation was modified from 6.04 to 6.05 percent for the end of 2023 and maintained at 4.18 percent for 2024.
Brazil’s official inflation target is 3.25 percent in 2023 and 3.00 percent in 2024, in both cases, with a 1.5 percentage point tolerance margin.
Analysts also maintained at 12.50 percent the basic Selic interest rate forecast at the end of the year, an indicator that now stands at 13.75 percent per annum and then gradually decreases to close at 10 percent in 2024.
Regarding the Brazilian currency exchange market, which is currently quoted at 5.02 reais per dollar, the projection was set at 5.20 units per US currency at the end of 2023 and 5.25 at the end of 2024.
As for the trade balance (exports and imports), the estimate was considered with a positive balance of US$ 60 billion this year and US$ 54.6 billion next year.
The estimate for the inflow of foreign direct investment in Brazil was placed at US$80 billion, both for 2023 and 2024.
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