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Brazil: Pandemic, inflation, and growth expectations

Brazil: Pandemic, inflation, and growth expectations | Calamatta Cuschieri Markets summary by Calamatta Cuschieri Notwithstanding the political turmoil, a caseload far surpassing last year’s pandemic peak, and a slow vaccination roll-out, several international banks and financial analysts have raised their forecasts for Brazil’s economic growth this year. A revised GDP growth figure, now pointing to at least 4 per cent, comes after a closely watched central bank index of economic activity suggested that Latin America’s largest economy may have expanded in the first quarter. In 2020, Brazil’s economy contracted 4.1 per cent and although most economists were expecting a recovery this year, the surge in infections plus an inoculation drive lagging behind the developed world, weighing on mobility, increased downside risks.

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