Modest drop-in services expected to bring 2024 GDP to 1.9% – 03/01
Brazil’s growth saw a 2.9% increase in 2023, strongly driven by the agricultural sector, which grew by 15.1%. However, despite the expected downturn in this sector, we have revised our GDP from 1.6% to 1.9%.
Nevertheless, our bias remains predominantly constructive for inflation – both from the reading of the February IPCA-15 and from the thorough observation of underlying services, which maintained our expectation of 3.6% for this year’s IPCA, despite the pressure from this group on current inflation.
In the external scenario, the American economy remains the main driver of the real’s performance.
For more information, please check our Weekly Report 53.
