financial market revises to low growth and raises inflation in 2027

The Brazilian economy in 2027 begins to receive pessimistic reviews from large financial institutions in the country, according to Revista Oeste. In reports released on November 6, Bradesco and XP updated their macroeconomic projections, pointing to a scenario of less dynamism in activity and persistent inflation.

According to Revista Oeste, the institution XP adjusted the 2027 activity indicator from 1.0% to 0.3%. In the same vein, Bradesco cut its growth estimate for the same period from 1.0% to 0.4%, distancing the country from more robust levels of economic expansion.

On the inflationary front, the numbers also worsened, as pointed out by Revista Oeste. The broker raised its forecast for the IPCA from 4.4% to 5.5%, while the bank increased its inflation projection from 4.1% to 5.3%.

To justify the cuts, XP highlighted the high debt of corporations and households and the retraction in government stimulus, according to Revista Oeste. Bradesco justified the scenario by pointing out the 0.4% drop in family purchases between April and June, as reported by Revista Oeste.

What changes for the investor

The deterioration in growth expectations and the increase in inflation projections for the medium term directly affect the reading of fiscal and monetary risk in the financial market. Investors who operate interest, foreign exchange and variable income start to reevaluate the premiums required on assets in the face of a more challenging macroeconomic environment and with less government stimulus.

Automatically translated from Portuguese.