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%.
Translated by Kiratiana Freelon