Brazil's financial market upgrades 2022 growth forecast to 3.05 pct

Photo taken on March 4, 2022 shows a branch of a Brazilian bank in Rio de Janeiro, Brazil. (Xinhua/Wang Tiancong)

Regarding Brazil's benchmark interest rate, which is currently at 13.75 percent annually, analysts expect it to remain unchanged until the end of the year and to gradually decline in 2023 to 11.75 percent.

BRASILIA, Dec. 5 (Xinhua) -- Brazil's financial market upgraded the country's economic growth forecasts for this year and the next, from 2.81 percent to 3.05 percent for 2022, and from 0.70 percent to 0.75 percent for 2023, the Central Bank of Brazil said Monday.

According to the bank's weekly survey of the country's leading financial institutions, at the start of the year, analysts were projecting a scant 0.28 percent growth in gross domestic product (GDP) in 2022.

Financial analysts also raised their inflation forecast, from 5.91 percent to 5.92 percent for this year and from 5.02 percent to 5.08 percent for the next.

Target inflation has been set at 3.50 percent for 2022 and 3.25 percent for 2023, in both cases with a margin of tolerance of 1.50 percentage points.

Regarding Brazil's benchmark interest rate, which is currently at 13.75 percent annually, analysts expect it to remain unchanged until the end of the year and to gradually decline in 2023 to 11.75 percent.

Brazil's currency, now trading at 5.23 reals to the U.S. dollar, is projected to trade at 5.25 reals to the dollar at the end of this year and the next.

With regard to Brazil's trade balance (exports and imports), 2022 is projected to see a surplus of 55 billion U.S. dollars, and there will be 58.15 billion U.S. dollars in 2023.

Foreign direct investment in Brazil should reach 78 billion U.S. dollars in 2022 and 75 billion U.S. dollars for 2023, according to analysts.