In its March Conjunctural Bulletin, published Wednesday, March 8, Brazil’s Institute of Applied Economic Research (IPEA) maintained its forecast that the Gross Domestic Product (GDP) will grow 3.4% this year.
According to IPEA economist, Fábio Giambiagi, the Brazilian economy will grow substantially more than last year, when the GDP increased 2.3%. The reasons, he said, are related to "the reduction in interest rates and the moderation of the political crisis."
Among the factors that compose the GDP, the forecast for growth in the agricultural sector this year was raised from 2.9% to 3.3%, and the forecast for growth in the industrial sector was raised from 4.7% to 4.8%. The forecast for growth in investments, on the other hand, was lowered from 7% to 5.8%.
According to Giambiagi, infrastructure investments associated with construction projects will be one of the drivers of economic growth.
The projection for inflation in terms of the Broad Consumer Price Index (IPCA) was lowered from 4.8% to 4.5%. The projection for this year’s trade surplus, on the other hand, was raised to US$ 19.2 billion, as against the US$ 16.4 billion projected three months ago. This result is due especially to the strength shown in primary goods exports.
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