Brazil’s financial market maintains economic growth forecast at 3.29% in 2021
RIO DE JANEIRO, BRAZIL – Brazilian financial analysts maintained their 2021 economic growth forecast at 3.29 percent of expansion in gross domestic product (GDP), after several weeks of decline, while keeping the estimate at 2.5 percent for 2022, the Central Bank of Brazil reported on Monday, February 1st.
According to the bank’s weekly survey of the country’s top financial institutions, analysts also increased estimated inflation in 2021 from 3.82 percent to 3.87 percent and from 3.49 percent to 3.5 percent in 2022.
The forecasts fall within the government’s target goal of 3.75 percent in 2021 and 3.5 percent in 2022, with a 1.5-percent margin of tolerance.
Regarding the benchmark interest rate, currently at 2 percent annually, the forecast remained at 4 percent by the end of 2021 and 5 percent by the end of next year.
For the Brazilian currency, which is now 5.6 reals against 1 U.S. dollar, analysts estimated 5.1 reals at the end of 2021 and 5.03 reals at the end of next year.
The trade balance between imports and exports is expected to reach a surplus of 55.1 billion U.S. dollars in 2021 and 50 billion U.S. dollars in 2022.
Meanwhile, the forecast for foreign direct investment is estimated at 55 billion U.S. dollars in 2021 and 64.4 billion U.S. dollars in 2022.
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