Brazil’s 2021 GDP growth forecast above 5 percent for first time

gdp forecast brazil focus report
Photo: Rafael Neddermeyer/ Fotos Públicas

Economists continue to increase their GDP growth projections for Brazil, according to this week’s Focus Report — a weekly Central Bank survey of top-rated investment firms. The new median growth forecast has jumped from 5 to 5.05 percent; expectations sat at 3.96 percent four weeks ago.

Markets have now revised their expectations upward for ten consecutive weeks.

As we explained in our ‘Number of the week’ segment, the Brazilian economy has learned to adapt better to Covid restrictions, with the second wave of infections experienced at the turn of the year having a lower impact on the economy than the first. 

Meanwhile, markets jacked up inflation forecasts — pushing their end-of-year prediction for the IPCA consumer price index from 5.9 to 5.97 percent. 

For the U.S. Dollar exchange rate, the median of year-end-estimates remained at BRL 5.10.