The employers’ association of industrialists raised its projection for the growth of the Brazilian economy in 2023 from the 1.2% that it calculated in April to the 2.1% that it foresees in its conjunctural report for June, but attributed that improvement to the good result of agriculture.
According to the National Confederation of Industry (CNI), the gross domestic product (GDP) of the largest Latin American economy will grow 2.1% this year, driven by the 13.8% expansion expected for the agricultural sector since activity in industry and services will slow down.
In any case, the projections confirm the slowing trend of the Brazilian economy, which grew 5.0% in 2021 and 2.9% in 2022.
According to the CNI, while agriculture will have an expansion of 13.8% in 2023 driven by record food production, the industry will only grow 0.6% this year after having expanded 4.8% in 2021 and 1.6% in 2022.
The 2% expansion of GDP is relevant, but if we isolate the result of agriculture, the rate of growth in Brazil slows down. The industry faces the effects of high interest rates and the credit crunch.
