Brazil to See Controlled Inflation in 2024

The bank's weekly "Focus" survey of the country's leading financial institutions showed that this was the first reduction in the inflation forecast following several weeks of deteriorating expectations, with both estimates falling within the official target rate of 3 percent with a 1.5 percentage point margin of tolerance up or down.

Regarding the GDP, market analysts slightly upgraded their growth forecast for 2024 from 2.10 to 2.11 percent, but maintained their projection for 2025 at 1.97 percent.

Analysts expect the central bank to maintain its benchmark interest rate at 10.50 percent until the end of this year and lower it to 9.50 percent next year.

Brazil's currency, currently trading at 5.44 reais to the U.S. dollar, is expected to trade at 5.22 reais to the dollar by the end of 2024 and at 5.20 to the dollar by the end of 2025, said analysts.

The trade balance is projected to have a surplus of 82 billion dollars in 2024 and 76.3 billion dollars in 2025.

Foreign direct investment in Brazil is expected to reach 70 billion dollars in 2024 and 74 billion dollars in 2025, said analysts.

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