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Brazil’s economy ministry raises GDP growth forecast for 2022 to 2%




Thursday 14 July 2022 09:34

BRASILIA, July 14 (Reuters) – Brazil’s economy ministry on Thursday raised its forecast for economic growth this year due to strong results seen in monthly indicators.

GDP is expected to grow by 2% instead of 1.5% earlier, as was first reported by Reuters on Tuesday. The ministry maintained its 2023 GDP growth outlook at 2.5%.

The government’s projections are more optimistic than market economists, according to a weekly central bank survey, which sees economic growth of 1.59% this year and only 0.5% next year.

The ministry’s secretariat for economic policy also lowered its 2022 inflation forecast to 7.2% from 7.9% in May to cover the impact of measures passed in Congress to reduce taxes on key goods such as fuel and energy. .

Still, that figure is far from the official inflation target of 3.5 percent this year, with a gap of 1.5 percent above or below.

For 2023, the government now expects inflation to rise from 3.6% to 4.5%, with a similar band of 1.5 percentage points to the official target of 3.25%.

Reporting by Marcella Ayers; Editing by Hugh Lawson and Tomas Janowski

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