3.2 BRAZIL

The Brazilian gross domestic product (GDP) is estimated to have increased by around 4% in 2021, compared with a drop of 4.1% in 2020, and has returned to the prepandemic level.

The room air conditioner (RAC) sector benefited as people are spending more time at home, due to the restrictions imposed during the pandemic. Also, with the high average temperatures in the country and the low penetration even in the higher income brackets, RAC sales increased by more than 20% in 2021 compared with 2020.