The president of the Central Bank, Roberto Campos Neto, stated this Friday (26) that it will be “very difficult for Brazil’s Gross Domestic Product (GDP) to grow less than 2% in 2024”, according to last year’s results and data of the first quarter.
According to Campos Neto, if this prediction is not confirmed, “something very different” would be needed in the second half of this year.
The statement was made at the Scenario and Perspectives for Brazil event, promoted by the Young Presidents’ Organization (YPO).
Regarding inflation in Brazil, the BC president highlighted that it is still on a downward trend and that the March data was better than expected. However, he warned that underlying services inflation remains at a high level, proving more resilient in items more linked to the labor market.
The financial market is already working with a scenario of higher inflation and a higher interest rate at the end of the year, following the decision by the government of President Luiz Inácio Lula da Silva (PT) to reduce fiscal targets for 2025 and 2026.
