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Brazil's financial market upgrades 2023 growth forecast

BRASILIA
2023-09-05 06:50

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BRASILIA, Sept. 4 (Xinhua) -- Brazil's financial market upgraded the country's economic growth forecast for 2023 from 2.31 percent to 2.56 percent, the Central Bank of Brazil said on Monday.

Meanwhile, financial analysts slightly downgraded next year's growth forecast from 1.33 percent to 1.32 percent.

According to the bank's weekly Focus survey of economists at the country's main financial institutions, at the start of 2023, analysts expected Brazil's gross domestic product (GDP) to expand by a scant 0.8 percent this year.

Analysts raised this year's inflation estimate from 4.9 percent to 4.92 percent and for next year, from 3.87 percent to 3.88 percent.

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

Market analysts maintained their forecast for the benchmark interest rate at 11.75 percent for this year, and at 9 percent for next year. The rate is currently at 13.25 percent annually.

Brazil's currency, which now trades at 4.92 reals to the U.S. dollar, is expected to trade at 4.98 to the dollar by this year's end and at 5 to the dollar by the end of 2024.

Foreign direct investment in Brazil is projected to reach 80 billion dollars in both 2023 and 2024.
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