“The interest rate hikes start to largely impact activity in the second half of the year, but its maximum effect will only be observed in 2023. We have already reviewed our 2023 GDP forecast to 1%”, affirms Andrea Damico, chief economist of Armor Capital.
Inflation, higher interest rates and a weaker global activity: risks that can undermine the Brazilian economy growth
Activity indicators performed better-than-expected in the beginning of the year, but Brazilian economy will have to deal with double-digit inflation, higher interest rates and global activity worsening
Although not robust, the Brazilian economy performance in the first quarter of the year came in line with most market expectations, showing a 1% 1Q22 advance. But Brazil will have to deal with several risk factors that might decelerate economic activity in the coming months.
