The Brazilian government raised inflation forecasts for 2021 – Prinsa Latina

According to the Economic Policy Secretariat’s macro-financial bulletin, inflation was expected to be 3.75 percent for 2022, above the official target of 3.5.

These statistics will serve as a bench for arranging the accounts of the draft budget for 2022, which the government sent to Parliament in August.

After discussion in that case, it is expected that it will be approved before the end of the year.

Due to the rise in prices, the estimated margin in the set of expenditures and expected revenues for the next year should be reduced due to readjustment of minimum wages and restriction of state expenditures.

The administration had more room in the 2022 budget to increase the amount of social assistance from the Bolsa Familia Resource Transfer Program, change it to Auxilio Brasil, and increase the amount of benefits and the number of beneficiaries.

In terms of GDP, the bulletin maintained the growth forecast for the end of 2021 at 5.3%.

In the same way, he praised the forecast against the Brazilian GDP contraction, an indicator that fell by 4.1 percent in 2020.

This recovery was seen in the services sector, which has been hit the hardest by the drop in demand in the past calendar due to the Covid-19 pandemic.

The government’s forecast for 2022 in terms of GDP growth has increased from 2.51 to 2.5%.

msm / ocs

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