Brazil witnessed a strong rebound in economic activity in 2021 as restrictions were lifted, with gross domestic product (GDP) growing by 4.6% on an annual basis after the economy shrank 3.9% in 2020 due to the pandemic.
As a result of improved macroeconomic conditions, the banking sector was able to build up its strength in the year to December 2021. Large Brazilian banks’ post-pandemic performance exceeded expectations, thanks to their diversified business model and sound pre-impairment profit, according to Fitch Ratings.
