Market revises Brazilian GDP growth upward and expects inflation to fall further in 2023
Financial market analysts continue to revise their growth forecast for Brazil’s Gross Domestic Product (GDP) in 2023 upward, according to the latest data from the Focus Report.
This marks the seventh consecutive week of positive adjustments in the GDP forecast. Additionally, the report indicates a further decline in the inflation forecast.
Analysts surveyed by the Central Bank now predict that the GDP will end the year with a growth rate of 2.18%, which is 0.04 percentage points higher than the previous week’s estimate and 0.92 percentage points higher than the forecast made a month ago.
Conversely, the forecast for inflation has seen a new downward revision. The projected inflation rate for the year has been revised from 5.12% to 5.06%.
Just a month ago, analysts estimated that the Amplified Consumer Price Index (IPCA) would reach 5.71% by the end of 2023.
Furthermore, market agents anticipate stability in the exchange rate, with the dollar expected to remain at R$5, and the benchmark interest rate (Selic) is projected to stay at 12.25% by the end of 2023.
More: Brazil news in English, every day from The Rio Times.
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