2023-11-22 14:52:51
Regarding inflation, the government began projecting an increase of 4.66% in the IPCA in 2023, the last estimate was 4.85%
joelfotos/Pixabay Brazilian GDP estimate for 2023 was readjusted by the Macrofiscal Bulletin
In the Macrofiscal Bulletin, released this Tuesday, 21st, by the Economic Policy Secretariat of the Ministry of Financethe projection of growth in the Gross Domestic Product (GDP) for 2023 was readjusted to 3%, 0.2 percentage points lower than expected. The government’s projection also fell for 2024, going from 2.3% to 2.2%. According to the bulletin, the change reflects the increase in uncertainty in the global scenario, the slowdown in Chinese growth and the prospect of American interest rates remaining at a high level. During the announcement, the Secretary of Economic Policy of the Ministry of Finance, Guilherme Mello, considered the projections for growth “reasonably stable”. The latest edition of Focus Bulletina Central Bank (BC) report that measures market expectations, pointed to GDP growth of 2.85% in 2023 and 1.5% in 2024.
In relation to inflation, the government started to project an increase of 4.66% in the IPCA in 2023. The last projection was 4.85%. The justification for the adjustment was that the disinflation process occurs more quickly than previously projected. The new estimate is within the target ceiling of 4.75% for 2023. “Next year we will test a convergence process to bring verified inflation closer to the center of the target, set at 3%”, declared Guiherme Mello. The positive inflation scenario reinforces the BC’s expectation of maintaining cuts in the basic interest rate (Selic).
*With information from reporter Letícia Miyamoto
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