The Latest: On September 22, the Banco Central do Brasil (BCB) raised its benchmark Selic target rate by 100bps to 5.25%. This followed a 100bp hike in August, and was the was the fifth consecutive hike this year. At Fitch Solutions, we forecast an additional 175bps of hikes by the end of the year, bringing the Selic to 8.00%.

Key View

• New legislation in Brazil that reduces the complexity and length of patent applications may pose challenges for innovative drugmakers.
• The Ministry of Economy is looking to improve drug pricing regulations for innovative drugs through the new proposals.
• Macroeconomic headwinds will persist in Brazil, posing downsides to investments

Key View

• We have revised up our forecasts for Brazil's wind and solar power sectors, with the non-hydro renewables sector set to continue its growth outperformance in the market.
• Power auctions and an uptick in PPAs support our more positive outlook on renewables sector growth.
• Robust growth in small-scale distributed solar power generation

Key View

• The weakening of the Brazilian real through 2020 lowers both previously estimated 2020 market size and future growth.
• Consumables will outperform the market, while low dental products and patient aids will go against macroeconomic trends.
• The new forecast will face mounting downsides risks from Covid-19 variants prevalent within

Key View

• The weakening of Brazilian Real through 2020 lowers both previously estimated 2020 market size and future growth.
• Consumables will outperform the market, while low dental products and patient aids will go against macroeconomic trends.
• The new forecast will face mounting downsides risks from Covid-19 variants prevalent within Latin

Key View:

• At Fitch Solutions, we hold a positive view for Brazil’s alcohol sector over the medium-term. Brazil’s alcohol sector is set to a make a full recovery in 2021, from a downturn in 2020 caused by the Covid-19 pandemic.
• We forecast beer to be the fastest growing alcohol consumption category over the medium-term (2021-2025).
• Alcohol

The Latest: On August 4, the Banco Central do Brasil (BCB) raised its benchmark Selic target rate by 100bps to 5.25%. The rate hike was its fourth consecutive this year, but was larger than the 75bps hikes enacted at its three prior meetings. At Fitch Solutions, we forecast an additional 175bps of hikes by end-2021 will bring the Selic to 7.00%.

Key View

• We at Fitch Solutions have grown more upbeat on the outlook for liberalising reforms to be enacted in Brazil over the coming quarters, as a broad consensus in favour is taking shape in Congress.
• However, the window for additional reforms will last only through end-2021, and the reforms that ultimately pass will be significantly more

Key View

• On June 16 2021, BCB raised the Selic by 75bps, and we at Fitch Solutions expect that the BCB will hike its benchmark Selic target interest rate to 6.00% by the end of 2021, an upward revision from our prior forecast of 5.00%.
• We forecast inflation will average 7.70% through the end of 2021, well above the 5.25% upper target, due to