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Brazil's financial market raises economic growth forecast to 3.09 pct in 2021

BRASILIA
2021-04-27 05:39

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BRASILIA, April 26 (Xinhua) -- Brazilian financial market analysts raised their economic growth forecast from 3.04 to 3.09 percent in 2021, according to the Central Bank of Brazil on Monday.

This is the first improvement in expected growth, after seven consecutive weeks of decline.

Experts maintained their forecast at 2.34 percent in 2022, according to the bank's weekly survey of the country's top financial institutions.

Analysts also raised estimated inflation in 2021 from 4.92 to 5.01 percent, and kept the 2022 estimate at 3.6 percent.

The projection is within the official target of 3.75 percent in 2021, with a 1.5-percent margin of tolerance, but is nearing the ceiling established by the National Monetary Council of 5.25 percent.

For this reason, economists raised their projection for the benchmark interest rate from 5.25 to 5.5 percent by the end of this year, and from 6 to 6.13 percent by the end of 2022.

Regarding the Brazilian currency, which is now 5.46 reals per U.S. dollar, analysts estimated 5.4 reals per U.S. dollar at the end of both 2021 and 2022.

Meanwhile, the trade balance between imports and exports is expected to reach a surplus of 59 billion U.S. dollars in 2021 and 54.55 billion U.S. dollars in 2022.

Experts also estimated foreign direct investment to be at 55 billion U.S. dollars in 2021 and 65 billion U.S. dollars in 2022.
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