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LatinNews Daily - 27 January 2021

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In brief: Brazil’s central bank warns over uncertain recovery

* The monetary policy committee (Copom) of Brazil’s central bank (BCB) has released the minutes from its latest meeting, which outline the overarching “uncertainty” in this year’s economic outlook. Noting that growth indicators for the end of 2020 had been “better than expected”, the Copom adds that “they do not capture the recent increase in the number of Covid-19 [coronavirus] cases”. The committee cautions that this unpredictability regarding pandemic developments, coupled with the need to adjust government spending and the unwinding of emergency aid programmes, increases the uncertainty of this year’s recovery and could even cause “a temporary reversal of the economic recovery”. In the BCB’s latest weekly survey of economists and analysts, Brazil’s GDP is projected to grow 3.49% this year.