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Brazil's financial market slightly upgraded its economic growth forecast for 2023, from 0.84 per cent to 0.85 per cent, the central bank said.

It was the third time in a row that top financial analysts surveyed by the bank for its weekly report upgraded their growth forecast for this year, though they maintained their 2024 forecast at 1.5 per cent, reports Xinhua news agency.

Last week, the Brazilian Institute of Geography and Statistics (IBGE) said the country's gross domestic product (GDP) grew 2.9 percent in 2022, after rising 5 per cent in 2021.

Analysts' inflation forecast held steady at 5.9 per cent for this year and at 4.02 per cent for the next.

Brazil's target inflation was set at 3.25 per cent for 2023 and at 3 per cent for 2024, in both cases with a 1.5 percentage point margin of tolerance.

Analysts also maintained their forecast for the benchmark interest rate, which is now 13.75 per cent annually, at 12.75 per cent for the end of the year, with a gradual decline in 2024 to 10 per cent.

The trade balance is expected to see a surplus of $57 billion in 2023 and $55 billion in 2024, with foreign direct investment projected to reach $80 billion in both 2023 and 2024.