OECD lowers Brazil’s 2022 growth forecast to 1.4%

An increase in demand for goods since the reopening of economies and the lack of supply to keep pace have created bottlenecks in production chains, underlines the OECD. Photograph:

The Organization for Economic Co-operation and Development (OECD) has cut its growth forecast for the Brazilian economy next year. The estimate which was 2.3% previously has been revised to 1.4% in a report published on Wednesday (1). For 2021, the forecast has been reduced from 5.2% to 5%.

“An increase in demand for goods since economies reopened and the lack of supplies to keep pace have created bottlenecks in production chains. Labor shortages, pandemic closures, rising energy and commodity prices, and shortages of some key materials are slowing growth and increasing cost pressures. Inflation increased significantly in some regions at the start of this recovery phase, ”the organization’s report said.

The Ministry of the Economy forecasts growth of 2.5% for 2022. The International Monetary Fund (IMF) estimates an increase of 1.5%.

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