Brazil’s central bank, Bacen, unveiled a forecast of a 1.7 percent growth for the country’s gross domestic product (GDP) in 2022, against a previous forecast of 1.0 percent unveiled in March.
According to Bacen, the industrial production forecast was revised from a decline of 0.3 percent to an increase of 1.2 percent, while for the agricultural production the forecast has increased from a positive 2.0 percent to 2.2 percent. Similarly, the forecast for services revenues has increased from positive 1.4 percent to 2.1 percent.
Regarding the components of demand, the consumption by families is now forecasted at a 1.7 percent increase, against 1.1 percent previously, and for government consumption it has declined from positive 2.3 percent to 1.8 percent.
Conversely, the forecast for gross fixed capital formation has declined from a negative of 1.5 percent in March to a negative 2.7 percent.
According to analysts, the new figures still indicated a lackluster performance of the economy, as measured by the slow GDP increase, while productive investments in the economy should face a downturn in 2022, as measured by the forecast for the gross fixed capital formation.