Number of the week

Markets grow bearish on Brazil

High inflation and interest rate hikes, combined with a never-ending political crisis, see 2022 GDP forecasts revised downwards

markets High inflation and interest rate hikes, combined with a never-ending political crisis, see 2022 GDP forecasts revised downwards.
Photo: Jorge Maricato/Shutterstock

Welcome to “Number of the Week,” where we choose a single figure that helps understand what is going on in Brazil. This week, we show why markets’ expectations for Brazil are growing less optimistic.

2.1%
GDP growth forecast for 2022

Brazil’s Central Bank held a private meeting with analysts from 42 institutions to assess markets’ concerns regarding next year’s macroeconomic indicators. Analysts believe that the economy is moving into an election-year rhythm, which should lead to greater pressure for more public spending, putting the fiscal side at risk. 

In addition, high inflation and interest rate increases,...

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