The Brazilian economy is exposed to serious risks after returning to the top ten in the world
2 min read
The performance of the Economie In early 2022, economists were not surprised, which is exactly what was expected for this period. In the first quarter, growth was only 1%. And despite the return of Brazil to the list of the 10 largest economies in the world, the country is taking a serious risk and heading towards increased inflation.
Moreover, among the major economies of the world, only Brazil and Turkey have double-digit inflation, interest rates and unemployment. So, to find out more about it, check below.
The Brazilian economy is exposed to serious risks after returning to the top ten in the world
Thus, even with growth, Brazil still needs to deal with a series of economic problems. Which could make the country’s economy really accelerate in the coming months.
However, according to economists, the scenario was already worse. From 2021 to 2022, many believed in the possibility of Brazil going through a year of economic stagnation. Today, although not perfect, expectations have improved. However, even in the most optimistic scenario, the growth forecast is for GDP in the range of 1.5%.
Among the main drivers of Brazil’s economic problems are high inflation, a bleak political scenario and high interest rates. At the beginning of June, Selic was at 12.75%. Copom is predicting further increases.
In addition to interest rates, prolonged high inflation reduces the purchasing power of households, especially the poorest. Which, in addition to putting Brazil back on the poverty map, also makes it difficult for the economy to turn around and recover.
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