BRASILIA, June 14 (Xinhua) -- Brazil's financial market upgraded its economic growth forecast for 2021 from 4.36 to 4.85 percent, but downgraded next year's projected expansion in Gross Domestic Product (GDP), from 2.31 to 2.2 percent, the Central Bank of Brazil said on Monday.
According to the bank's weekly survey of the country's main financial institutions, growth projections have been steadily rising, with expected GDP growth projected to be 3.45 percent four weeks ago.
Regarding inflation, financial analysts upped their forecast from 5.44 to 5.82 percent for 2021 and from 3.7 to 3.78 percent for 2022.
This year's projected inflation far exceeds the government target of 3.75 percent with a margin of tolerance of 1.5 percentage points, which caps target inflation at 5.25 percent.
With that in mind, analysts raised their forecast for the benchmark interest rate, from 5.75 to 6.25 percent by the end of the year, while maintaining it at 6.5 percent for 2022.
Regarding the trade balance, analysts estimated a trade surplus of 68 billion U.S. dollars in 2021 and of 60 billion U.S. dollars in 2022.
Foreign direct investment in Brazil was forecast to reach 58.9 billion U.S. dollars this year and 66.99 billion U.S. dollars next year.