RIO DE JANEIRO, BRAZIL - Brazil may enter a stagflation scenario (combination of slow economic growth and rising prices), should it not rain again in the fourth quarter of the year, according to RPS Capital analysts.
In their opinion, the Brazilian economy has absorbed several shocks throughout the year, with the disruption of global production chains and, more recently, increased freight costs, with a new Covid outbreak in China.
"If the rainy season remains poor, we may face complications, and the risk is considerable. The drought scenario needs to end by October, when the transition to a wetter period occurs," says . . .
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