Brazil cuts economic growth estimate to 1.5 pct in 2022

The Brazilian government cut its forecast for gross domestic product (GDP) growth in 2022 to 1.5 percent from 2.1 percent estimated in November 2021, the Ministry of Economy announced on Thursday, adding that the forecast for 2023 remained at 2.5 percent.

According to the ministry's Economic Policy Secretariat, the cut is due to statistical revisions derived from the 2019 national accounts update released in December, and lower growth than projected in the second half of 2021.

Last year, industry and agriculture were adversely affected by bottlenecks in global supply chains and by the biggest water crisis in Brazil in almost 100 years.

This year's economic performance, according to the government, will be driven by the expansion of the labor market, increased investment, a more robust service sector and continued fiscal consolidation.

The government also revised its estimate of official inflation, measured by the national Broad Consumer Price Index, to 6.55 percent in 2022, up from 4.7 percent in November, while keeping the forecast at 3.25 percent for 2023. ■