Brazil's financial market slightly upgrades 2024 GDP growth forecast

BRASILIA, Dec. 26 (Xinhua) -- Brazil's financial market maintained its 2023 economic growth forecast at 2.92 percent, but slightly upgraded the expected expansion in gross domestic product (GDP) in 2024 from 1.51 percent to 1.52 percent, the Central Bank of Brazil said Tuesday.

In keeping with its latest Focus survey of the country's top financial analysts, the Central Bank of Brazil also adjusted its inflation forecast from 4.49 percent to 4.46 percent for 2023, and from 3.93 percent to 3.91 percent for 2024.

The forecasts fall within the National Monetary Council's target inflation of 3.25 percent this year and 3 percent next year, both with a margin of tolerance of 1.5 percentage points.

Given the improved inflation scenario, financial analysts reduced their forecast for the base interest rate, currently at 11.75 percent annually, from 9.25 percent to 9 percent by the end of 2024.

The South American country's currency, trading at 4.85 reals to the U.S. dollar, is expected to trade at 4.9 reals to the dollar by the end of 2023 and 5 reals to the dollar by the end of 2024.

Meanwhile, Brazil's trade balance is expected to see a surplus of 81.4 billion dollars in 2023 and 71 billion dollars in 2024.

Foreign direct investment in the country was estimated at 60 billion dollars in 2023 and 65 billion dollars in 2024.