Market analysts in Brazil predict lower inflation and higher GDP in 2023

According to the Focus Report from the Central Bank released on Monday morning (12), financial market experts predict that inflation will close the year at 5.42%.

This marks the fourth straight week of declining expectations for the Broad Consumer Price Index (IPCA) for the year.

From last week to this week, there was a decrease of 0.27 percentage points in the forecast and a decline of 0.61 points compared to a month ago.

Projections for the next three years also indicate a steady drop in inflation, based on the data collected from market professionals by the Central Bank.

Conversely, market predictions for the Gross Domestic Product (GDP) – the total value of all goods and services produced within the country – suggest it will close the year with a rise of 1.84%.

This is the fifth consecutive week of rising expectations for this indicator.

The exchange rate forecast for the US dollar remains unchanged at R$ 5.10, and the estimated Selic rate is expected to finish in 2023 at 12.5%.

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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief