Official data released on Thursday showed gross domestic product expanded 1% in the January-March period from the previous quarter. The result fell short of the 1.2% median forecast in a Bloomberg survey. From a year prior, the economy gained 1.7%.
“Brazil is one of the only cases where growth forecasts increased for 2022,” central bank President Roberto Campos Neto told lawmakers earlier this week. Thursday’s print is “not representative of the underlying strength of the economy moving forward,” he said.. The central bank is extending a tightening cycle that has already raised the benchmark Selic 10.75 percentage points, hikes that are expected to bite hard on the economy later this year.
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