Brazil Overcomes Crisis With 8th Highest GDP Growth in the World in 2022, According to Austin Rating Survey of 32 Countries, Outpacing Major Powers

Growth of 1% in This First Quarter of 2022 of Brazil’s GDP Brought 8th Place in the World Ranking

A survey conducted by Austin Rating placed Brazil in 8th place in the ranking with 32 world economies concerning Gross Domestic Product (GDP). This is because the country had a growth of 1% in the first quarter of 2022, which brings a lot of hope for the year. Brazil shared this position with Mexico and Colombia.

The 1% growth is compared to the three months prior to this first quarter of 2022, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). This is already the third positive result in a row, with growth reaching 1.1% in the first quarter of 2021. To understand a little more about these results, continue reading.

Learn More About This Growth in Brazil’s GDP in 2022 with the Video Below

Major World Economies Like United Kingdom, Australia, and United States Fell Behind Brazil in This Ranking

The countries of Latin America performed well in this ranking and are ahead of major powers like the United States, Australia, and the United Kingdom. In first place was Peru, with a growth of 2% in its GDP, followed by the Philippines, which had 1.9%, and Canada, with a 1.6% increase during the period. As stated, Brazil occupies the 8th place, along with Mexico and Colombia.

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However, countries like China, Turkey, and Thailand still ranked ahead of Brazil with percentages between 1.2% and 1.3% growth. Major powers such as the United States, France, and Japan showed economic contraction at the beginning of 2022, possibly due to the ongoing war between Russia and Ukraine and the resulting inflation. The image below shows the record of the top 12 positions in Austin Rating’s ranking.

Although It Is a Promising Result, Brazil’s GDP Projections for the Year Are Below Other Countries in the Ranking

Despite this great performance at the beginning of the year, experts from Austin Rating indicate that this should not be maintained until the end of the year. The forecast is that growth will be recorded at only 0.7% of GDP, which is well below the calculated values for other countries, totaling 3.2% for the year.

“In this picture Brazil is doing well, but it should not sustain this same performance until the end of the year. We will have to wait for the next quarters, when all countries have returned to a normal growth pattern, to see how Brazil behaves in this scenario of high interest rates in the U.S., the continuation of the war in Ukraine, and the slowdown in China”

Alex Agostini, Chief Economist at Austin Ratings, in an interview with Portal G1

This forecast is based on the fact that inflation is still affecting and interest rates are high, in addition to the unfavorable international scenario. The trend is that the United States and China will emerge in the coming months and stand out in the global scene.

However, Santander Bank brings more optimistic forecasts of 1.2% for 2022. For 2023, what is expected is a major recession threat, with a contraction of 0.6% in GDP. However, this may change as the international scenario presents changes, as this will dictate the results of inflation at the national level.

The document containing the results from Austin Rating can be accessed here.