Brazil’s Central Bank maintains 2022 GDP growth forecast at 1 percent

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The Brazilian Central Bank has kept its GDP growth forecast for 2022 at 1 percent. The figure was released on Thursday in the bank’s quarterly inflation report.

This forecast hovers between markets’ forecast of 0.5-percent growth and the government’s prediction of 1.5 percent. The monetary authority says agribusiness and services sectors will lead the Brazilian economy through 2022 — and the improved pandemic scenario should have a positive impact on annual results. Still, “high fiscal risks” and rampant inflation continue to threaten Brazilian growth.

On Wednesday, the chairman of the Central Bank Roberto Campos Neto said the war in Ukraine could be positive for the Brazilian economy in the long run, with expected hikes to commodity prices. He said the conflict could force a redesign of global supply chains — and Brazil could elbow in with success.