World Bank raises forecast for Brazilian GDP in 2023 and 2024.
According to the institution, the national Gross Domestic Product grew by more than 3% in 2023.
247 - The World Bank (WB) has increased its forecast for Brazilian economic growth in 2023 and 2024, and reduced its estimate for the expansion of the Gross Domestic Product (GDP) in 2025. The information was published this Tuesday (9) by newspaper The State of S.Paulo.
According to the institution, GDP grew by 3,1% in 2023. The previous forecast, released in June of last year, pointed to an expansion of 1,2%. "The upward revision in 2023 growth was driven by stronger-than-expected performances in agricultural production, private consumption and exports in the first three quarters of the year," the World Bank said in the report.
For 2024, the forecast is that GDP will rise 1,5%, or 0,1 percentage point more than the previous estimate. For 2025, the World Bank estimated growth of 2,2%, below the previously projected expansion of 2,4%.
The monetary authority also advocated for "further interest rate cuts, supporting medium-term investment and consumption prospects" in Brazil. Currently, the benchmark interest rate, the Selic, is 11,75%. On January 30th and 31st, representatives of the Monetary Policy Committee (Copom), linked to the Brazilian Central Bank (BC), will announce another decision on the percentage. The BC is chaired by Roberto Campos Neto.