BC President predicts economic growth above market estimates in 2023 and 2024

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Roberto Campos Neto projected a GDP increase of 3% this year and around 2% next year. Market analysts speak of an increase of 2.9% in 2023, and 1.5% in 2024. The president of the Central Bank, Campos Neto Pedro França/Agência Senado The president of the Central Bank, Roberto Campos Neto, stated this Wednesday- fair (27) that the Gross Domestic Product (GDP) should show growth of 3% this year and around 2% in 2024 – and could be slightly above this level. ✅ Click here to follow the new g1 channel on WhatsApp The projections made by Campos Neto are more optimistic than the estimates made by financial market economists, who predict an increase of 2.92% this year, and 1.5% in 2024. GDP is the sum of all goods and services produced in the country. The indicator serves to measure the evolution of the economy. If GDP grows, it means that the economy is doing well and producing more. If GDP falls, it means the economy is shrinking. In other words, consumption and total investment is lower. However, a rise in GDP does not always equate to social well-being. Campos Neto made the projections during a public hearing at the Finance Committee of the Chamber of Deputies, hours before a meeting he will have with President Luiz Inácio Lula da Silva (PT) and the Minister of Finance, Fernando Haddad. Campos Neto says that the government must insist on fiscal targets even if they are not met Projections by BC president Campos Neto raised the economic growth projection released by the Central Bank in June this year. At the time, the estimated increase in Brazilian GDP in 2023 was 2%. A new official estimate will be released by the institution this Thursday (28), through the inflation report for the second quarter of this year. The head of the BC also released, for the first time, a growth projection for 2024, around 2%. This estimate is above the expectations of the financial market, which last week projected an expansion of 1.5% for the Brazilian economy next year. The forecasts for greater economic growth come after the announcement that the Gross Domestic Product (GDP) grew 1.9% in the first quarter of this year and 0.9% in the second quarter (from April to June). In both cases, projections were above financial market estimates. During the public hearing at the Chamber, Campos Neto stated that market economists have been more pessimistic in their projections about GDP, in relation to the result determined later. “Which makes us think that the structural reforms of several governments have had an impact, and that potential growth can be revised upwards”, declared the president of the BC.

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