BRASILIA, July 14 (Reuters) – Brazil’s finance ministry on Thursday raised its forecast for economic growth this year due to the strong results seen in the monthly indicators.

Domestic sales are expected to rise by 2% instead of the previous 1.5% expected, according to Reuters reported on Tuesday. The ministry maintained GDP growth in 2023 at 2.5%.

Government estimates are more optimistic than that of market economists, who see a growth rate of 1.59% this year and 0.5% next year, according to a weekly central bank survey.

The Secretariat of the Ministry for Economic Policy also lowered the 2022 inflation rate to 7.2% from 7.9% in May, in addition to what happened to Congress to reduce taxes on essential commodities, such as oil and energy.

However, the figure is still far from the 3.5% inflation target this year, with a margin of 1.5 percent above or below.

By 2023, the government now expects inflation to 4.5%, up from 3.6%, against the 3.25% controlled by the same 1.5 per cent group.

Marcela Ayres reports; Edited by Hugh Lawson and Tomasz Janowski

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