Despite recording 4.6-percent GDP growth and recovering its pandemic losses, Brazil has dropped in the ranking of the world’s biggest economies, from 12th to 13th. The country is now behind Australia, which had leapfrogged Spain in 2021.
The Brazilian recovery from the pandemic downturn was weaker than the global average (5.7 percent). Moreover, the Brazilian Real lost almost 7.3 percent against the U.S. Dollar last year — the ranking, by consultancy firm Austin Rating, is calculated in current USD.
While BRL is enjoying massive gains in 2022 — being one of the world’s best-performing currencies in February — Austin Rating believes the country will not make great strides this year. Analysts overwhelmingly expect a scenario of stagflation, characterized by little to no growth coupled with rising prices.