São Paulo – In its quarterly inflation report made public on Thursday (27), Brazil’s central bank bumped its 2024 gross domestic product growth forecast to 2.3% from the previous 1.9% prediction.
According to the central bank, the economic performance and labor market are more robust than expected, thus contributing to a drop in unemployment and rising wages.
Although May’s historic floods in Brazil’s southernmost state of Rio Grande do Sul have caused a significant economic downturn in the region, signs of recovery are already visible.
In the first quarter, the Brazilian GDP grew at 2.5% from the same period last year and 0.8% from the previous quarter.
Central bank points to inflation increase
Global landscape, the central bank says, remains adverse and requires caution from emerging countries. There is uncertainty about the monetary policy of the Federal Reserve, as well as doubts about regarding how fast the inflation will slow down in several other countries.
For Brazil, their inflation projections are now at 4.0% for this year, 3.4% in 2025 and 3.2% in 2026, against an official target of 3%.
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Brazil’s economy grows 2.5% in first quarter
Translated by Guilherme Miranda