RIO DE JANEIRO, BRAZIL - Itaú's projection, after its prior forecast of 0.5% growth, is one of the first to predict negative GDP growth for Brazil in 2022, a year in which there will be presidential, legislative and regional elections.
This percentage contrasts with the government's current forecast of 2.5% growth for 2022.
Itaú considered that, given uncertainties surrounding the Jair Bolsonaro government's fiscal policy agenda in a high inflation context, interest rates will rise, which will generate "weaker economic activity."
"Increased fiscal uncertainty implies a higher country-risk, further depreciation of the Brazilian real, worse . . .
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