Fiscal deterioration may pull GDP down in 2022, XP says

Despite the impasse over the 2021 budget and the disturbances in the public accounts, the current approach of the economic policy should be maintained. The brokerage house sees the country going into recession in 2022, in case the most pessimistic hypothesis comes true. While the GDP should grow 3.2% this year and 1.8% next year in the baseline scenario, in the pessimistic alternative, growth would be 2.8% in 2021, followed by a 1.1% drop in the GDP in 2022.

Source: Valor International