The Brazilian Ministry of Finance raised its forecast for economic growth in 2023 to 3.2% from the previous estimate of 2.5% in July, driven primarily by unexpectedly strong activity during the second quarter of the year.
In addition to the surprise of the second quarter, the ministry’s Economic Policy Secretariat said in a statement that a more robust crop contributed to the revision, along with positive results for some economic indicators during the third quarter, and expectations of economic recovery for the main trades. China’s partner in the fourth quarter.
Finance Minister Fernando Haddad – who has previously stated that the economic expansion will exceed 3% this year – noted that the government’s ongoing agenda, including tax reform and the environmental transformation plan, holds the potential to boost the country’s growth.
On one occasion, he said: ‘some are already saying: Brazil may not have as low growth potential as previously thought. Why? They were betting that it would grow by less than 1% this year, and it would grow by more than 3%. He focused on Sustainable Development hosted by the industrial groups CNI and FIESP in New York.
The ministry maintained its forecast of a 2.3% increase in GDP for 2024. Inflation estimates have remained at 4.85% for this year, and have been revised to 3.4% for next year, up from 3.3% previously.
Economists in the private sector have systematically improved their GDP calculations for Latin America’s largest economy, but they are still less optimistic than the government, and expect an increase of 2.89% this year and 1.50% next year, according to a weekly central bank survey.
