Brazil Cuts 2022 Inflation Forecast to 5.85 pct

Economic growth for 2022 was projected to remain steady at 2.7 percent, according to the quarterly Macro Fiscal Bulletin issued by the ministry's Secretariat for Economic Policy. For 2023, the economic growth forecast was downgraded from 2.5 to 2.1 percent, Xinhua reported.

"As has been indicated in previous bulletins, a slowdown in economic activity was expected in the second half of the year as a result of the delayed effects of the monetary policy adjustment cycle," the secretariat said.

At the same time, the impacts resulting from interest rate hikes are expected to abate over the next year, it said.

According to the bulletin, a sharper slowdown in global growth is expected in 2023, but without a global recession taking shape.

The government's estimates are in line with those of other financial institutions. Economists consulted by the central bank forecast 2.77 percent growth this year, with inflation of 5.82 percent.

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