Brazilian Growth Constrained By High Inflation, Weaker Investment And External Demand

• It is forecasted that growth in Brazil will slow from 4.6% in 2021 to 0.8% in 2022, weighed down by high inflation and tight monetary policy, political uncertainty and weaker external demand in H2. 
• This forecast is down from 1.0%, as the positive news of an upside growth surprise in Q122 was outweighed by revised forecasts for higher interest rates in Brazil and weaker growth in China. 
• In 2023 it is expected that growth will pick up to 1.5%, as inflation moderates, interest rates are cut, and political uncertainty eases after October 2022’s general election.

(Source: Fitch Solutions)