Sign up now for FREE unlimited access to Reuters.com
BRASILIA, Sept 15 (Reuters) – Brazil’s economy ministry on Thursday raised its forecast for economic growth this year to 2.7%, from 2% expected in July, after official second-quarter data showed brisk activity showed.
The ministry’s economic policy secretariat said the upbeat revision comes after GDP growth beat expectations, rising 1.2% between April and June. Activity will continue to grow in the second half, albeit at a slower pace, she added.
“The first releases for July suggest that industry, services and the labor market will continue to grow. The confidence series confirm positive expectations for the third quarter, with broad expansion across sectors,” the secretariat said in a statement.
Sign up now for FREE unlimited access to Reuters.com
The ministry maintained its GDP growth forecast of 2.5% for 2023.
Private economists estimate that Latin America’s largest economy will grow 2.39% this year and just 0.5% next year, hit by the central bank’s sharp monetary tightening to curb inflation.
Policymakers have already pushed interest rates down to 13.75% from a record low of 2% in March last year.
However, the ministry reiterated that its much more optimistic outlook for 2023 is supported by larger private investment and historically high capital goods imports as a percentage of GDP.
Despite the moderate slowdown expected for global growth, Brazil sees more formal sector jobs and more higher productivity services, the secretariat added.
The ministry lowered its inflation forecast for 2022 to 6.3% from 7.2% in July. For 2023 it was kept at 4.5%.
Sign up now for FREE unlimited access to Reuters.com
Reporting by Marcela Ayres; Edited by Steven Grattan and Bernadette Baum
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.