BRASILIA, Sept. 4 (Xinhua) — The Central Bank of Brazil announced on Monday that Brazil’s financial market has revised its economic growth forecast for 2023 from 2.31 percent to 2.56 percent.
Meanwhile, financial analysts have slightly lowered their growth forecast for next year from 1.33 percent to 1.32 percent.
According to the bank’s weekly Focus survey of economists from the country’s main financial institutions, at the beginning of 2023, analysts anticipated a meager 0.8 percent expansion of Brazil’s gross domestic product (GDP) for this year.
Analysts have also raised their inflation projection for this year from 4.9 percent to 4.92 percent and for next year from 3.87 percent to 3.88 percent.
Brazil’s target inflation rate is set at 3.25 percent for 2023 and 3 percent for 2024, with a tolerance margin of 1.5 percentage points in both cases.
Market analysts have maintained their forecast for the benchmark interest rate at 11.75 percent for this year and at 9 percent for next year. The current annual rate stands at 13.25 percent.
The Brazilian currency, which is currently trading at 4.92 reals to the U.S. dollar, is expected to reach 4.98 to the dollar by the end of this year and 5 to the dollar by the end of 2024.
Foreign direct investment in Brazil is projected to amount to 80 billion dollars in both 2023 and 2024.
Credit: The Star : News Feed
