Economy in 2022: why expectations for Brazil are rapidly deteriorating

  • Thais Carrança – @tcarran
  • From BBC News Brasil in São Paulo

'Hunger is back,' says a protest poster on Avenida Paulista, in São Paulo

Credit, Roberto Parizotti/Public Photos

Photo caption,

‘Hunger is back,’ says a protest poster on Avenida Paulista, in São Paulo

Economists are strongly revising their expectations for the performance of the Brazilian economy in 2022.

On Tuesday (9/14), Itaú bank reduced its expectations for GDP growth (Gross Domestic Product) next year from 1.5% to 0.5%. The country’s largest private bank also started to forecast an increase in unemployment next year, with the unemployment rate rising from 12.1% at the end of 2021 to 12.5% ​​in December 2022.

In addition to Itaú, several other financial institutions and analysis houses started to forecast lower GDP, higher inflation and higher interest rates in the next scenario.

The growth of the GDP and the situation of the job market and income in the next year generate great expectations, as they are determining factors in the well-being of the population and in the conduct of elections in which the current president is trying to be reappointed to the position.