Brazil: Economists Predict GDP Will Grow Below 1% in 2022
Worsening political crisis, high prices, unemployment, risk of energy shortages and external perspective led to revised predictions
Sep.15.2021 1:56PM
Douglas Gavras
SÃO PAULO
Financial analysts downgraded their forecasts for economic growth next year, which were already being reduced given the worsening of the political crisis, unemployment, inflation, and energy shortages.
A few weeks ago, banks and consultancies expecting a rise above 2% in Gross Domestic Product for 2022 now forecast growth below 1%.
For Itaú Unibanco, which worked with an increase of 1.5% of GDP in 2022 and now expects 0.5%, the rise in interest rates weighed on inflation – the IPCA, consumer price index, jumped 9.7% in 12 months.
The water crisis and its implications also are exerting pressure. The bank forecasts a slowdown in the global industry and the consequent fall in commodity prices, which will affect the country.
JP Morgan lowered its forecast from 1.5% to 0.9%. Safra lowered its forecast from 1.5% to 1.1%. And the MB Associados consultancy cut a point from its forecast, now 0.4%.
https://www1.folha.uol.com.br/internacional/en/business/2021/09/economists-predict-gdp-will-grow-below-1-in-2022.shtml?utm_source=newsletter&utm_medium=email&utm_campaign=newsen
(Short article, no more at link.)
Remember, President Jair Bolsonaro already is claiming the next election would be fraudulent, and "only God" can remove him from office.
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