In an interview with CNN, economist and former secretary of Economic Policy at the Ministry of Finance José Roberto Mendonça de Barros stated that I expect a Gross Domestic Product (GDP) for the third quarter of this year to be very close to zero. The specialist also does not see a good scenario for the coming months.
“The fourth quarter appears to be very worrying,” said Barros.
“And we may also have, unfortunately, a first quarter of next year – even adjusted for the time of year – quite weak.”
The negative effect on the economy which the specialist projects could already be felt in services. According to the IBGE (Brazilian Institute of Geography and Statistics), the sector fell by 0.6% in September.
Still, Economy Minister Paulo Guedes believes that market experts are underestimating Brazil’s growth potential in 2022. The head of ministry predicts that GDP will advance more than the 1% predicted by economists, after growing by around of 5.5% this year.
“The horizon of a technical recession of at least two consecutive negative quarters is highly likely,” said Barros.
(Published by Evandro Furoni)
Reference: CNN Brasil
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