Brazil’s Financial Market Slightly Upgrades 2021 Growth Forecast to 3.49%

RIO DE JANEIRO, BRAZIL – Brazilian financial analysts upgraded their economic growth forecast for the year, from a 3.45 percent expansion in gross domestic product (GDP) to 3.49 percent, the Central Bank of Brazil said on Monday, January 25th.

According to the bank’s weekly survey of leading financial institutions in the South American country, analysts maintained their growth forecast for 2022 at 2.5 percent.

Analysts raised their inflation estimate for 2021, from 3.43 to 3.5 percent, and maintained the estimate for 2022 at 3.5 percent.

The inflation forecasts fall within the government’s target goal of 3.75 percent in 2021 and 3.5 percent in 2022, with a margin of tolerance of 1.5 percentage points up or down.

Regarding the trade balance (exports and imports), analysts projected a surplus of 55 billion U.S. dollars in 2021 and 49.3 billion U.S. dollars in 2022.

Foreign direct investment in Brazil is expected to reach US$60 (R$324) billion this year and US$70 billion the next.

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