Government maintains economic growth estimate of 2.3% in 2024, but sees inflation reaching 3.63%

[ad_1]

GDP projection remains at the same level as in March, when the government had released the last macrofiscal bulletin. Financial market sees lower growth for the economy, 1.30%. The Ministry of Finance estimated this Tuesday (23) a growth of 2.3% in the Brazilian Gross Domestic Product (GDP) in 2024. The GDP is the sum of all goods and services produced in the country and is used to measure the economy growth. The information is contained in the Macrofiscal Bulletin, released by the Economic Policy Secretariat (SPE). The projection is practically the same in relation to the previous one, released by the portfolio in March. At the time, the SPE forecast a growth of 2.34% for the Brazilian GDP. The government’s forecast, however, is higher than forecast by the financial market, which believes that the Brazilian economy will grow only 1.30% next year. The data is from the Focus Bulletin, released weekly by the Central Bank, which listens to more than 100 financial institutions. In a note, the SPE says that “the policies of social inclusion, the fight against poverty and hunger and the reduction of defaults should continue to drive growth [da economia], supported by increased investments resulting from the ecological transition plan, partnerships between the public and private sector and measures to make the capital market more efficient”. “It is projected to start the process of easing the monetary policy of developed economies already at the end of 2023, in response to the systemic risk, which should remain, and to the trend of more expressive deceleration of activity and credit throughout the second half. ” GDP preview advances 2.41% in the 1st quarter Inflation The Ministry of Finance also estimated that the Extended National Consumer Price Index (IPCA) for 2024 will grow 3.63%. In the last bulletin, the government’s expectation was that inflation would reach 3.52% next year. The 2024 inflation target, defined by the National Monetary Council (CMN), is 3% and will be considered met if it oscillates between 1.5% and 4.5% That is , the government forecast remains within the ceiling of the inflation target, but is gradually moving away from the center of the target, 3%. According to the Focus bulletin, the financial market estimates that inflation will be 4.13% in 2024.

[ad_2]

Source link