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Legacy Capital Expecting Another Recession in 2022

BRAZIL
  • (Bloomberg) -- Legacy Capital expects Brazil's interest rates to reach 12% in 1Q22 amid soaring inflation expectations.
  • The fund estimates Brazil GDP growing 4.7% this year, followed by a 0.5% contraction in 2022. Additionally, they see Brazil inflation reaching 9.7% in 2021, 6.1% in 2022.
  • The Brazil outlook has deteriorated "significantly" amid a change in the country's fiscal rules. A combination of low investments and high unemployment should lead to another recession in 2022.

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