Brazil's Financial Market Upgrades 2022 Growth Forecast to 3.05 Percent

According to the Central Bank of Brazil’s weekly survey of the country's leading financial institutions, at the start of the year, analysts were projecting a scant 0.28 percent growth in gross domestic product (GDP) in 2022, Xinhua reported.

Financial analysts also raised their inflation forecast, from 5.91 percent to 5.92 percent for this year and from 5.02 percent to 5.08 percent for the next.

Target inflation has been set at 3.50 percent for 2022 and 3.25 percent for 2023, in both cases with a margin of tolerance of 1.50 percentage points.

Regarding Brazil's benchmark interest rate, which is currently at 13.75 percent annually, analysts expect it to remain unchanged until the end of the year and to gradually decline in 2023 to 11.75 percent.

Brazil's currency, now trading at 5.23 reals to the US dollar, is projected to trade at 5.25 reals to the dollar at the end of this year and the next.

With regard to Brazil's trade balance (exports and imports), 2022 is projected to see a surplus of 55 billion US dollars, and there will be 58.15 billion US dollars in 2023.

Foreign direct investment in Brazil should reach 78 billion US dollars in 2022 and 75 billion US dollars for 2023, according to analysts.

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