Inflation weighs on the GDP result, with a 30% increase in food

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in front of a job market weakened and the stagnation of household consumption, which remained at zero to zero in the second quarter compared to the first three months of the year, business investments also did not take off in the period. “It’s a vicious cycle that tends to keep the economy at lower levels,” says André Perfeito, chief economist at Necton Investimentos.

Added to this are the rise in inflation and the political crisis, which collaborate to push future interest rates up, and here is the perfect storm. “We work with the hypothesis that given the high inflation for the producer, greater than that of the consumer, entrepreneurs tend to reduce their margins and, therefore, their investment capacity”, says Perfeito.