Citi has revised up its estimate for Brazil’s gross domestic product (GDP) growth this year to 0.7%, citing strength from recent economic indicators.
In a previous scenario, the US bank forecast expansion of just 0.1%, but was more optimistic after data on industrial production, construction, retail sales and services activity, according to a report published this Friday ( 13).
The latest IBGE readings showed that Brazil’s industrial production had its first quarterly gain in a year in the first three months of 2022, while the retail sector grew more than expected in March — a period in which the volume of services jumped 1 .7%, the strongest result for the month in the historical series started in 2011.
The improvement in Citi’s forecast for full-year growth was accompanied by a 0.4 percentage point increase in its quarterly expansion forecast for the period from January to March this year, when Brazilian GDP is expected to have advanced 0.6%.
While showing more hope about economic activity, Citi has warned of a challenging inflationary scenario.
Its forecasts for the IPCA rise this year and next were raised to 7.8% and 3.9%, respectively, at the end of April.
The lender expects the Selic rate to reach 13.25% by the end of 2022.
Source: CNN Brasil
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