While the two leading domestic banks are predicting growth of around 3% for next year, their chief economists’ presentations to the Felaban conference in Miami in mid November disregarded the risk to growth from drought.
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Sylvio Castro, Credit Suisse Hedging-Griffo |
However, according to Sylvio Castro, CIO at Credit Suisse Hedging-Griffo Private Banking, investors on Brazil “shouldn’t ignore the energy and lack-of-water risk in 2018, which is being over-looked. The truth is we are very much reliant on the hydroelectrical power for growth.” Rainfall in Brazil’s latest rainy season ending in April was below average and the country is entering the dry season with much less water than in 2016.
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