Brazil revises up economic growth forecast for 2022

By Ovunc Kutlu

ISTANBUL (AA) - Brazil’s central bank has revised upward the growth forecast for this year.

The projection for GDP growth in 2022 was raised to 2.9% from 2.7%, Banco Central Do Brasil said in its inflation report released on Thursday.

The growth projection for 2023 remained unchanged at 1%, "reflecting the prospective scenario of a slowdown in economic," it said. "Domestic and external uncertainties remain high and, thus, growth projections for Brazil, especially for 2023, are more uncertain than usual."

Inflation expectations for 2022, 2023 and 2024 remained relatively stable, around 5.9%, 5.1% and 3.5%, respectively, according to the report.

The gain in Brazil's annual consumer inflation rate slowed down in October for the third consecutive month. The consumer price index rose 6.47% in October year-on-year, but it was a sharp decline from annual gains of 7.17% in September, 8.73% in August, and 10.07% in July.

Banco Central Do Brasil last week kept its interest rate stable at 13.75%, in line with market expectations, which is the highest since January 2017.

The central bank last made a rate hike of 50 basis points on Aug. 3, carrying the interest rate to 13.75%, which is significantly up from the record low of 2% in March 2021.