Brazilian financial analysts upgraded their economic growth forecast for 2021, from 3.41 percent to 3.45 percent of expansion in gross domestic product (GDP), and maintained the projection at 2.5 percent for 2022, the Central Bank of Brazil announced Monday.
According to the bank’s weekly survey of the country’s top financial institutions, the analysts also increased estimated inflation for 2021 from 3.34 percent to 3.43 percent, but kept it at 3.5 percent for next year.
The inflation forecast falls within the government’s target goal of 3.75 percent in 2021 and 3.5 percent in 2022, with a 1.5-percent margin of tolerance.
Regarding the benchmark interest rate, the forecast remained at 3.25 percent by the end of 2021 and at 4.75 percent by the end of 2022.
The analysts kept their projection for the Brazilian currency, which is currently 5.3 reals against 1 United States dollar, at 5 reals at the end of 2021 and 4.9 reals at the end of next year.
In addition, the trade balance between imports and exports is expected to deliver a surplus of 55 billion United States dollars in 2021 and 50 billion United States dollars in 2022.
Foreign direct investment is expected to reach 60 billion United States dollars in 2021 and 70 billion United States dollars the next year.