Rio de Janeiro – The Institute of Applied Economic Research (IPEA) has revised down the 2021 Gross Domestic Product (GDP) growth projection from 4.8% to 4.5%. In 2020 the GDP declined by 4.1%.
According to the Economic Outlook, the three large sectors of the economy had their growth projections revised by IPEA. Manufacturing is expected to grow by 4.9% in 2021, and services 4.5%. Agriculture saw a 1.2% growth revised to a 1.2% decline this year, which is explained by the climate problems that impacted the harvest and a worsening performance of cattle production.
Projections for 2022
IPEA has revised down its 2022 GDP growth projection from 1.8% to 1.1%. This was driven by a high inflation that impacted the household purchasing power, as well as tightening monetary policies due to inflation and high interest rates in the credit market, which could create negative consequences to the economic activity in 2022.
Translated by Guilherme Miranda
