The Ministry of Economy maintained its projection for the increase in Gross Domestic Product in 2022 at 3.2%, but raised the estimate for inflation to 4.42%, above the center of the target, according to a bulletin released on Wednesday by the Secretariat of Economic Policy (SPE). “Uncertainties are high with the challenges of facing the pandemic, but the indicators in the first two confidence of businessmen and consumers even in the midst of the upsurge in the Covid-19 pandemic in the country.
Economy – GDP
According to Reuters, SPE pointed out that the statistical increase in GDP growth at the end of last year is 3.6% for 2022 and that high-frequency indicators up to February have shown continuity in the pace of growth, “contrary to some more pessimistic forecasts. which suggested a retraction in 1Q21 (first quarter) due to the end of emergency aid. ”In comparison with the same period of the previous year, however, the SPE projects a fall in GDP in the first quarter of 0.35%, with the assessment March's performance is still uncertain due to the greater rigidity of the distance rules imposed in several regions of the country in the midst of the resurgence of the pandemic.
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The adjustment in the estimate for the IPCA this year was significant – in November, the SPE predicted an increase of 3.23% in 2022 – and reflected, according to the bulletin, the pressure of food prices. The goal for this year is 3.75%, with a margin of tolerance of 1.5 percentage points more or less. For the period 2022-2024, the ministry's projection for the increase in GDP was also unchanged, at 2.5% per year, and inflation is expected to converge to the target. Just click here if you are already an investor. The post Ministry of Economy predicts a 3.2% increase in GDP in the year, with inflation above the target appeared first in 1 Billion Financial Education.