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Brazilian analysts upgrade GDP's growth forecasts

BRASILIA
2023-06-27 10:06

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BRASILIA, June 26 (Xinhua) -- Brazilian financial analysts raised their projected GDP expansion in 2023 from 2.14 to 2.18 percent, the seventh consecutive weekly upgrade, and upped the 2024 forecast from 1.20 to 1.22 percent, the Central Bank of Brazil said Monday.

Analysts lowered the forecast inflation for the year from 5.12 to 5.06 percent, and for next year, from 4.00 to 3.98 percent, according to the bank's weekly Focus survey of the country's top financial institutions.

Brazil's target inflation is 3.25 percent for 2023 and 3 percent for 2024, with a 1.5 percentage point margin of tolerance in both cases.

Market analysts maintained the forecast for the benchmark Selic interest rate at 12.25 percent for this year and at 9.50 percent for the next. The rate is currently at 13.75 percent annually.

The balance of trade is expected to leave the country with a surplus of 62 billion U.S. dollars in 2023 and 55.61 billion U.S. dollars in 2024.

Foreign direct investment in Brazil is projected to reach 79 billion U.S. dollars this year and 80 billion U.S. dollars next year.
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