Santander bank manager foresees a growth of 0.5% for Brazil in 2022

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Sao Paulo, Dec 8 (EFE) .- The manager Santander Asset Management Brazil reported this Wednesday that it foresees an expansion of the South American country’s economy of just 0.5% by 2022, a percentage below that estimated by the Government (2 , 1%) and in line with the forecast by the financial market (0.51%).

The entity calculates that the Brazilian Gross Domestic Product (GDP) will grow 4.6% in 2021, after the fall of 4.1% that it suffered in 2020 and that the Government later corrected to 3.9%, as a result of the coronavirus pandemic.

But next year it will register “significantly lower growth”, “close to zero”, with inflation that will continue to be a cause for “concern”, Carlos André, CEO of Santander Asset Management Brasil, the manager of Santander, said in a meeting with journalists. investment funds of the Spanish bank in the South American country.

For 2021, the financial entity calculates a price increase of 10.4% and 5.4% in 2022 in Brazil, also “above the ceiling of the goal”, which for next year is 3.5% with 1.5 tolerance points up or down.

This will cause the Central Bank to continue raising the basic interest rate, which, according to Santander’s forecast, will close 2021 at 9.25% and 2022 at 11.25%, which in a certain way will impact growth.

Likewise, gross debt will rebound slightly from 81.8% this year to 84.8% in 2022, a year that will be marked by the presidential, regional and legislative elections in October, amid a fragile fiscal scenario.

(c) EFE Agency

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