According to the Central Bank’s Focus Report, a weekly survey among top-rated investment firms, Brazil’s median GDP growth forecast for 2021 rose from 3.04 to 3.09 percent over the past week. This is the first time projections have improved on a weekly basis since March 8.
Latest data from the bank’s Economic Activity Index (IBC-Br) suggests that the Brazilian economy grew 1.7 percent in January, igniting hopes of a positive Q1 GDP result.
However, current expectations sit well below the 3.4 percent median forecast from the turn of the year.
Per the same report, markets also increased their projections for the Selic benchmark interest rate (from 5.25 to 5.5 percent by year-end) and for inflation (4.92 to 5.01 percent).