Market predicts high GDP and reduction of inflation in 2022, points out Focus

posted on 01/08/2022 12:08 / updated on 01/08/2022 12:20

(credit: Marcello Casal Jr/ Agência Brasil)

The financial market reduced its inflation forecast for 2022, from 7.3% to 7.15%. However, the scenario expected by the market for 2023 is an increase from 5.30% to 5.33% for inflation. The numbers are from the Focus Bulletin of the Central Bank (BC), published this Monday (8/1)

The document, which gathers the estimates of more than 100 financial market institutions for the main economic indicators, shows that this is the fifth week in a row in which the report brings positive expectations for the Brazilian economy.

In the case of the projections of the Gross Domestic Product (GDP), the projection is that the economy will reach 1.97% of growth per year, very close to what was expected by the economic team of the federal government. The previous week, the forecast was 1.93%. In 2023, the GDP estimate fell from 0.49% to 0.40%.

The Extended Consumer Price Index (IPCA) forecasts, which show a reduction from 7.3% to 7.15% in 2022 inflation, show that in 2023, the scenario is an advance from 5.30% to 5, 33%.