World Bank raises Brazil’s growth forecast to 1.2%

In a scenario that it classified as “resilience of the global economy”, the World Bank raised its forecast for growth in Brazil’s Gross Domestic Product (GDP, sum of the wealth produced in the country) in 2023 from 0.8% to 1.2%. projection appears in the Global Economic Perspectives report, released this Tuesday (6) by the financial institution.

Despite the improvement in 2023, the World Bank reduced, from 2% to 1.4%, the growth projections for the Brazilian economy in 2024, in comparison with the previous report, released in January. For 2025, the multilateral organization estimates expansion of 2.4%.

Released twice a year, the report lists estimates for the performance of economies across the planet made by the World Bank. According to the multilateral organization, despite the improvement in some Latin American countries, economic growth this year will be sustained mainly by exports, in a scenario of difficulties caused by persistently high domestic inflation and rising interest rates.

For the global economy, the document raised the economic growth estimate from 1.7% to 2.1%. According to the World Bank, the United States and other major economies are proving to be resilient in the face of interest rate hikes decided by the main central banks.

Even with the improvement, the World Bank estimate represents a slowdown compared to 2022, when the global economy grew by 3.1%. For 2024, the report lowered the growth forecast from 2.7% to 2.4%. According to the international organization, high interest rates will have an effect next year, through a drop in commercial and residential investment.