BRASILIA, Mar 7 (NNN-CMA) – Brazil’s financial market slightly upgraded its economic growth forecast for 2023, from 0.84 percent to 0.85 percent, the Central Bank of Brazil said, yesterday.
It was the third time in a row that top financial analysts, surveyed by the bank for its weekly report, upgraded their growth forecast for this year, though they maintained their 2024 forecast at 1.5 percent.
Last week, the Brazilian Institute of Geography and Statistics (IBGE) said, the country’s gross domestic product (GDP) grew 2.9 percent in 2022, after rising five percent in 2021.
Analysts’ inflation forecast held steady at 5.9 percent for this year and at 4.02 percent for the next.
Brazil’s target inflation was set at 3.25 percent for 2023, and at three percent for 2024, in both cases with a 1.5 percentage point margin of tolerance.
Analysts also maintained their forecast for the benchmark interest rate, which is now 13.75 percent annually, at 12.75 percent for the end of the year, with a gradual decline in 2024 to 10 percent.
The trade balance is expected to see a surplus of 57 billion U.S. dollars in 2023, and 55 billion U.S. dollars in 2024, with foreign direct investment projected to reach 80 billion U.S. dollars in both 2023 and 2024.– NNN-CMA
