BRASILIA, June 9 (Xinhua) — The Brazilian financial market has increased its forecast for Gross Domestic Product (GDP) growth in 2025 from 2.13% to 2.18%, while slightly raising the projection for 2026 from 1.80% to 1.81%, according to the Central Bank of Brazil. The Focus survey conducted by the monetary authority among the country’s leading financial institutions shows that the market’s new forecast remains below the Ministry of Finance’s projection of 2.4% growth for 2025. Regarding inflation, market analysts slightly adjusted their forecast for 2025 from 5.46% to 5.44%, down from 5.51% four weeks ago, while maintaining the estimate at 4.50% for 2026. The inflation forecast for this year is still above the official target ceiling of 3%, with a tolerance margin of 1.5 percentage points. As for the benchmark Selic interest rate, market analysts kept the projection at the current annual level of 14.75% by year-end and reduced it to 12.50% by the end of 2026. The market expects the Brazilian real to trade at 5.80 per US dollar by the end of this year and at 5.89 next year. The trade balance forecast indicates a positive balance of $74.5 billion in 2025 and $78 billion in 2026. Expectations for foreign direct investment inflows into Brazil remain at $70 billion for both 2025 and 2026.
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