Central Bank projects GDP above 2% for 2022, says Campos Neto

Central Bank projects GDP above 2% for 2022, says Campos Neto

The president of the Central Bank of Brazil (BCB), Roberto Campos Neto, stated that the institution expects growth above 2% for the Brazilian economy this year. The president’s statement took place in a presentation at the Macroday event by BTG Pactual, where Campos Neto compared Brazil’s growth expectations with other countries in the world.

Also according to Campos Neto, the data will be updated in September, in the quarterly release of the next BCB Inflation Report. In the presentation, Brazil appears in the opposite direction of the main countries of the world, presenting an increase in the GDP projection, compared to the expectation in the period before the war in Ukraine.

The projection of the Brazilian GDP for 2022 above 2% had already been announced by Minister Paulo Guedes, in early July, and repeated by the government’s economic team. The last edition of the Bulletin Focus, which researches the financial market projection for the Brazilian economy, the institutions also raised the expectation of economic growth.

Global and Brazil Inflation

During the lecture, Campos Neto stated that in 2014 and 2015, the high rates of inflation in Brazil were caused by an error in domestic economic policy. “Now, we are suffering from the impact of global inflation, but we are still below the world average”, highlighted the president.

According to the president of the BCB, the government’s fiscal policies, such as aid and tax reductions, and the way they will be extended and financed, are worrying about the rise in the inflation rate for 2023.

“Minister Guedes is better able to say how it will be financed. But the inspector is always crucial at that moment, he is always in danger. When I rescue material from the past, there’s always a tax problem. We work with debt sustainability, and it will be challenging to look at the social and debt balance at the same time.

Campos Neto also emphasized that the price reduction measures pushed inflation this year to 2023. “If you work only to extend the horizon, there is uncertainty, because you don’t know what will come back.”, he points out.

Source: CNN Brasil