Brasília – The Economic Policy Secretariat (SPE) of the Ministry of Economy of Brazil raised the projection for the growth of the Brazilian economy this year, while the estimate for inflation declined. Projections were stated in the Macro fiscal Bulletin released this Thursday (15).
The estimate for the increase in Gross Domestic Product (GDP) went from 2% in the July assessment to 2.7%, reflecting the rising employment, service sector performance, and increasing investment rate, according to the document.
“The upward revision for economic activity in 2022 is mainly due to the second quarter GDP result – 1.2% margin growth – higher than estimated and the upward trend of the indicators already released for the third quarter of 2022,” informed the SPE.
In the first half, the indicator accumulated a 2.5% advancement. In 2021, Brazil’s GDP grew by 4.6%, totaling BRL 8.7 trillion (about USD 1.68 trillion at the current rate). From 2023 to 2026, projections for Brazilian GDP growth remained at 2.5%.
According to the Ministry of Economy, there was an expansion in the labor market, with the unemployment rate falling to 9.1% in the second quarter and the number of employed people reaching almost 100 million, a record in the historical series, which began in 2012. Data are from the Brazilian Institute of Geography and Statistics (IBGE).
Regarding investments, Gross Fixed Capital Formation (GFCF) rose 4.8% from the previous quarter in the last release of national accounts. The Broad National Consumer Price Index (IPCA) inflation projection for 2022 dropped from 7.2% to 6.3%. In 2022, IPCA already accumulates a high of 4.39%; in the last 12 months, the total sits at 8.73%.
Translated by Elúsio Brasileiro
