Brazil’s GDP growth forecast down from 2.1% to 1.5%
Brazil’s government reduced its forecast for the grwoth in country’s gross domestic product (GDP) in 2022 from 2.1 to 1.5 percent. For next year, the predicted 2.6 percent growth was maintained.
“The GDP projection was revised downwards largely due to technical and statistical factors linked to last year’s GDP figures. The Ukraine war also played a role. But looking forward, the fundamentals that have been underpinning our forecast for GDP growth in 2022 can still be seen—namely the recovery in employment and the increase in investment,” said Economic Policy Secretary Pedro Calhman.
In addition, the government raised its projection for this year’s inflation from 4.7 to 6.55 percent.
The information can be found in the Macrofiscal report, released Thursday (17) by the Ministry of the Economy.
The increase in the forecast inflation comes one day after the Monetary Policy Committee (COPOM) raised the economy’s benchmark interest rate (Selic) from 10.75 to 11.75 percent a year as a way to reduce economic activity and curb price hikes.
Inflation is expected to move back to the target of 3.25 percent a year, starting in 2023.
