Brazil Economy's Early 2025 Surge Boosts Full-Year Forecasts
- In the first quarter of 2025, Brazil’s economy expanded by 1.4%, largely propelled by an unprecedented 12.2% surge in agricultural output, which compensated for stagnant industrial performance and modest growth in the services sector.
- This expansion occurred despite the Central Bank keeping borrowing costs elevated at 14.75% in an effort to control inflation.
- Robust domestic consumption, supported by rising urban wages, and strong agrifoodtech investments including a $60 million funding round for Solinftec, fueled the resilience.
- Q1 2025 agrifoodtech investment reached $76.8 million, with Brazil capturing 3.1% of global funding led by larger deals, while inflation eased to 0.36% monthly.
- Despite growth, Brazil faces rising federal debt at 76.2% of GDP and interest payments consuming 7.76% of output, posing fiscal challenges ahead of 2026 elections.
17 Articles
17 Articles
Brazil's 1.4% Q1 2025 Growth Clashes With Debt Surge to 76.2% of GDP
Brazil’s economy grew 1.4% in the first quarter of 2025, driven by a historic 12.2% agricultural boom that offset industrial stagnation, according to the Brazilian Institute of Geography and Statistics (IBGE). The agricultural sector’s record soybean and cotton harvests propelled growth, while industry contracted 0.1% and services inched up 0.3%. Household consumption rose 2.7%, though […]
A Difficult Cycle to Read - 31/05/2025 - Ana Paula Vescovi
Brazil started in 2025 with a further sign that growth should surprise analysts and the prio Central Bank. The challenge, by m, to keep this trajet ra. In the first quarter, PIB (Bruto Internal Product) avan or 1.4% relative to the previous quarter, the best performance since the year 2023. The growth vision for the year has become clearly high, staying between 2% and 2.5%. Read more (05/31/2025).
Brazil’s Economy Surges Again as High Rates Fail to Dent Growth – Bloomberg
Brazil’s economy has once again defied expectations by recording robust growth despite persistently high interest rates. According to a recent Bloomberg report, the South American powerhouse continues to demonstrate remarkable resilience, with key economic indicators signaling sustained expansion. This unexpected surge challenges conventional wisdom about the dampening effects of restrictive monetary policies, positioning Brazil as [...]
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