According to estimates in the 2027 Budget Guidelines Bill (PLDO), submitted to Congress on Wednesday (Apr. 15), Brazil’s economy (GDP) is expected to grow 2.56 percent next year.

The bill also forecasts a drop in official inflation, as measured by the Broad National Consumer Price Index (IPCA), to 3.04 percent in 2027, compared to the 3.74 percent estimated for this year.

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Regarding the IPCA, the projection for next year falls within the continuous 3 percent target set by the National Monetary Council (CMN), with a tolerance margin of 1.5 percentage points. Within this range, inflation could vary between 1.5 percent and 4.5 percent next year without breaching the target.

The bill also projects the Selic, the economy’s benchmark interest rate, at 10.55 percent per year in 2027, compared with the current 14.75 percent.

The text sent to Congress projects an average exchange rate of BRL 5.47 for 2027. Although oil is currently trading at around USD 100 per barrel, the bill estimates the commodity’s average price - used to project federal government royalty revenue - at USD 67.69 next year.