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Secretary Of Economic Policy Comments Following GDP Data

BRAZIL
  • (Reuters) - Brazil's Secretariat of Economic Policy said on Thursday that the sharp 2022 economic slowdown is mainly due to reduced liquidity in the external environment and the contractionary cycle of monetary policy in the country.
  • In a statement about the GDP performance, which rose 2.9% last year compared to 5% in 2021, SPE said that the country's high benchmark interest rate worsens the conditions of both bank and non-bank credit, posing a risk to activity this year by making it difficult for companies to roll over debt.
  • They added that positive factors may help economic growth in the coming months, including an improved labor market, minimum wage increase and record grain harvest.

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