Brazilian government downgrades official GDP growth forecast to 3%
Brazil’s gross domestic product growth estimate for 2023 has been lowered from 3.2% to 3% due to the expectation of zero GDP growth in the third quarter of the year
The revision of the indicator was motivated, according to the Ministry of Finance, by the expectation of zero GDP growth in the third quarter. Previously, the forecast was for growth of 0.1 per cent. Also reviewed was the growth of economic activity in the services sector in Brazil, which rose from 2.3% to 2.2%. This is reported by Toda Palavra, a partner of TV BRICS.
As for the fourth and last quarter of the year, the government’s forecasts still maintain growth, mainly due to the persistence of household consumption, driven by the increase in real labour income and improved conditions of access to credit.
The agricultural sector is mainly responsible for Brazil’s GDP growth, with an expected growth of 14%. The industry is expected to grow by 1.9%.
According to Guilherme Mello, Minister of Economic Policy, there has been a significant improvement in the credit market thanks to the beginning of the Central Bank’s interest rate cuts.