Brazil’s 2022 GDP projections lowered to 2.1% due to political instability, draught and inflation

The rapid deterioration of the political and institutional environment, added to persistent inflation, a historic drought that compromises energy supply and agribusiness, high interest rates and fiscal disarray have already contaminated the economic scenario in Brazil and deflated the prospect that the market will gain momentum after a year and a half of pandemic. The Focus bulletin, which gathers market estimates, revised its forecast for growth next year from 2.5% in January to 2.1%. The International Monetary Fund lowered its expectations to 1.9%. Entrepreneurs and merchants also review plans.

Source: Folha Sao Paolo