Brazil's Financial Market Cuts 2023 Growth Prospect to 0.76 Percent

According to the bank's weekly survey of the country's top financial institutions, analysts also slightly raised their forecast inflation rate for this year, from 5.78 percent to 5.79 percent, and for next year, from 3.93 percent to 4 percent.

Analysts raised their forecast for the benchmark interest rate, currently at 13.75 percent annually, from 12.5 percent to 12.75 percent by the end of 2023, with a gradual decline to 10 percent in 2024.

Brazil's currency, which now trades at 5.22 reals (Brazilian currency) to the US dollar, is expected to trade at 5.25 to the dollar by the end of 2023 and at 5.3 to the dollar in 2024.

Brazil's trade balance should see a surplus of 57.2 billion US dollars in 2023 and 56.5 billion US dollars in 2024, said analysts.

Foreign direct investment in Brazil was estimated to reach 80 billion US dollars both this year and the next.

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