Itaú reduces growth expectations for 2021 and 2022

The automotive industry affected by the lack of semiconductors Photo: Government of the State of Rio de Janeiro

Itaú has downgraded growth expectations for the Brazilian economy in 2021 and 2022. For this year, he reduced the GDP expansion projection from 5.8% to 5.7%, reflecting, in part, the scarcity of supply from the automotive industry, affected by the electronic chip crisis.

For next year, there was a decrease from 2.0% to 1.5%, in line with other Latin American countries, reflecting “the decrease in fiscal and monetary stimuli, the less favorable external environment (with lower commodity prices, slower global growth and a withdrawal of monetary stimulus in the United States), the dissipation of benefits from the economic reopening, and fiscal and political uncertainties.