Brazil Economic Outlook
June 14, 2022
Growth picked up somewhat in Q1 according to recent data, underpinned by a strong positive contribution from the external sector, as exports of goods and services rose sharply. In contrast, private consumption growth was unchanged from Q4, while government consumption growth slowed and fixed investment contracted at the fastest pace since Q2 2021. Investment was likely restrained by higher interest rates and inflation, and political uncertainty ahead of the October general elections. Turning to Q2, available data suggests the economy continues to expand amid fiscal support and as the impact of the pandemic fades, with the manufacturing and services PMIs averaging higher in April–May relative to Q1, and the unemployment rate falling to a fresh multi-year low in April. That said, tighter monetary conditions and double-digit inflation will likely be weighing on activity somewhat.Brazil Economic Growth
GDP growth is set to slow significantly this year from 2021. Investment is seen contracting amid higher interest rates and soft business sentiment, while growth in consumption and exports is set to slow. The outcome of October’s presidential elections, uncertainty over the fiscal position and the length of the commodity price boom are key factors to watch. FocusEconomics analysts see the economy expanding 1.0% in 2022, which is up 0.3 percentage points from last month’s forecast, and 1.2% in 2023.Brazil Economy Data
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Brazil Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 6.79 | -0.82 % | Dec 31 |
| Exchange Rate | 4.02 | -0.13 % | Jan 01 |
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Brazil Economic News
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Brazil: Economic activity beats expectations and grows at strongest rate in 17 months in July
September 15, 2022
Economic activity growth accelerated to 1.2% month on month in seasonally-adjusted terms in July (June: +0.9% mom).
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Brazil: Decline in retail sales softens in July
September 14, 2022
Retail sales fell 0.8% month on month in seasonally-adjusted terms in July (June: -1.4% mom).
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Brazil: Inflation falls to over one-year low in August
September 9, 2022
Consumer prices fell a seasonally-adjusted 0.36% in August over the previous month, a less pronounced fall than the 0.68% drop recorded in July.
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Brazil: Industrial output records quickest growth in five months in July
September 2, 2022
Industrial output increased 0.6% month-on-month in seasonally-adjusted terms in July (June: -0.3% mom).
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Brazil: Conditions improve at milder pace in August
September 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) fell to a four-month low of 51.9 in August from July's 54.0.
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