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

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%.

Translated by Kiratiana Freelon

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