Thus, this marks the third upward revision of the official projections, which are now above 2.9% growth.
The portfolio of Brazil Economy stands firm in the 4.9% inflation for 2023 and marginally raised next year’s, up to 3.4%. Brazil revised upwards its growth projection for the current year, after a better than expected economic performance during the first six months of the year; At the same time, it kept the estimates of inflation.
The South American giant will expand 3.2% in 2023 and a 2.3% in 2024, according to a report published by the Treasury portfolio. In July, the Government of Luiz Inácio Lula da Silvapredicted that the gross domestic product would grow 2.5% this year.
Thus, the third upward revision of the official projections is configured, which are now above 2.9% growth estimated by the analysts who survey the central bank.
Brazil’s GDP increased 0.9% in the second quarterthree times more than expected by the analysts surveyed by the agency Bloomberg, driven by a strong service sector and a robust labor market. The Treasury Palace also based its upgraded forecast on an expected recovery in ChinaBrazil’s main partner, as well as data that reveals that the local credit market is growing again.
“The Government is optimistic about the last quarter of the year due to the positive developments we are seeing in the labor and credit marketsas well as inflation,” he said Guilherme MeloSecretary of Economic Policy, to the press and added: “Total wages and real incomes are growing, while bad loans are declining with slower inflation.”
Thus, the Ministry maintains the 4.9% of its estimate for price increases this year and marginally raised next year’s, up to 3.4%. Both forecasts remain above each year’s goal.
The South American giant’s resilient economy boosted approval ratings Lula, which reached 60%, according to the latest polls. It also supports the view that the central bank is succeeding in engineering a soft economic landing, after a cycle of severe tightening in monetary policy promoted by its president, Roberto Campos Neto.
Source: Ambito
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