Deceleration in sight

It is true that the first half of this year has been marked by strong performance in terms of activity, but this is due to temporary factors, such as the reopening of the economy, the normalization of public services, fiscal stimulus, and a significant rise in commodity prices. In fact, even though we previously wrote that there would be no recession in Brazil this year, we recognize that the short-term resilience of activity has been surprising.

It so happens, however, that these are very transitory impulses. In the absence of more stimulus, more restrictive monetary policy will increasingly predominate, and as always, it will impact the economy after a certain lag.

Enjoy the reading of the full report!