Brazil's market upgrades 2024 economic growth forecast to 2.09 pct

BRASILIA, June 10 (Xinhua) -- Brazil's financial market raised its gross domestic product (GDP) growth forecast for this year from 2.05 percent to 2.09 percent and maintained it at 2 percent for 2025, Brazil's Central Bank announced Monday.

According to the bank's Focus survey of the country's main financial institutions, the market has regained a more optimistic view of economic activity following five weeks of downward projections.

Market analysts slightly raised the inflation forecast, from 3.88 percent to 3.90 percent in 2024 and from 3.77 percent to 3.78 percent for 2025, in both cases falling within the official target rate of 3 percent with a margin of tolerance of 1.5 percentage points up or down.

Economists kept their forecast for the Selic benchmark interest rate at 10.25 percent for end of 2024 but raised it from 9.18 percent to 9.25 percent for end of 2025, with the rate currently at 10.50 percent annually.

Regarding the exchange market for Brazil's currency, currently trading at 5.37 reals to the U.S. dollar, the forecast expects 5.05 to the dollar at end of 2024 and 5.09 to the dollar at end of 2025.

A trade surplus of 82.51 billion dollars is expected for this year and 78 billion dollars for next year.

Foreign direct investment in Brazil is expected to reach 70 billion dollars in 2024 and 72.5 billion dollars in 2025. ■