In an interview with CNN this Thursday (1st), the chief economist at Inter, Rafaela Vitoria, projects that the next results of the Gross Domestic Product (GDP) should reflect a slowdown in the Brazilian economy.
“We do not project a recession, even with the Selic at the current high level of 13.75%, but a slowdown, with lower growth rates from now on”, she declared.
“In the labor market, we may have a generation of vacancies in a smaller volume than what we have seen so far.”
According to the chief economist, the restrictive monetary policy of the Central Bank, which aims to curb inflation, should reduce household consumption in commerce — a symptom that has already appeared in the GDP result for the 3rd quarter, released this Thursday morning.
According to the Brazilian Institute of Geography and Statistics (IBGE), the Brazilian economy grew by 0.4% in the last three months, below market expectations, but at the highest level of the historical series, which began in 1996.
“The strongest GDP growth is due to the service sector, which has a large volume of employability of labor. This result is very consistent with the stronger labor market that we are following, including the unemployment rate published by the Pnad at 8.3%”, said Vitoria.
“One of the sectors that had a negative performance this quarter was commerce, as retailers are already starting to feel the high interest rate. The drop in demand also tends to slow down the labor market, which should be reflected in the next GDP results.”
Check out the full interview in the video above.
Source: CNN Brasil
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