2024-08-05 02:52:45
RIO DE JANEIRO, For the ninth consecutive week, the Brazilian financial market raised its inflation forecast for this year in the country, placing it at 4.02 percent, while also increasing its estimate of GDP growth to 2.1 percent, the Central Bank of Brazil reported today.
According to the Focus Bulletin, which the issuing body publishes every Monday after interviewing a hundred economists and financial institutions in the country, the forecast for inflation in Brazil for 2024 rose from 4 to 4.02 percent.
For 2025, the inflation projection has also been raised from 3.87 to 3.88 percent. For 2026 and 2027, the forecasts are 3.6 percent and 3.5 percent, respectively.
The financial market’s estimate for this year is higher than the 3 percent target set by the Government and the Central Bank, although within the tolerance margin of 1.5 percentage points above and below, which allows the indicator to be between 1.5 and 4.5 percent.
In the past 12 months through May, according to official figures, inflation in Brazil reached 3.93 percent.
Regarding the growth of the Brazilian economy in 2024, financial institutions expect the Gross Domestic Product (GDP) to grow by 2.1 percent, compared to 2.09 percent last week.
The Selic rate, currently at 10.5 percent, should remain at the same level through the end of the year, according to financial analysts, while Brazil’s trade balance was projected to remain at a surplus of $82 billion.
Furthermore, the exchange rate is expected to end the year at 5.20 reais per dollar and should remain at the same level until the end of 2025.