Central Bank projects Brazil’s GDP growth of 1% for 2023

The Central Bank projected the Brazilian GDP for 2023 at 1%, according to the Quarterly Inflation Report released this Thursday (29).

The BC’s expectation of the country’s economic growth in 2023 is above the market projection. In the latest Focus bulletin, published on Monday (26), the market median for next year’s GDP is 0.5%.

According to the document, the highlight of growth goes to the agricultural sector, which should increase by 7.5% next year.

“The prospect of a rise in agriculture, a less cyclical sector, reflects favorable forecasts for the 2022/2023 grain crop, especially for soybean crops – after a partial break in the 2021/2022 crop – and corn, with an expected increase of planted area and productivity. Growth in the slaughter of cattle, swine and poultry is still expected.”, highlights the report.

Also according to the BC, on account of supply, the industry and services sector should show slight growth, with variations of 0.4% and 0.6%, respectively.

For exports of goods and services, the projection is for growth of 3% for next year. According to the institution, despite the projection of a slowdown in the global economy, exports should be driven by basic products.

Already the forecast of imports is high of 0.5%. The growth reflects the expectation of a deceleration in household consumption, for example. According to the report, for 2023, household consumption should increase by 0.7%.